The Australian share market is stronger at midday, fuelled by the major banks and miners like BHP and Rio Tinto and buoyed by upbeat company earnings results announced this morning.
The S&P/ASX200 index is up 77 points at 4,712 and on the futures market the SPI200’s up 87 points.
In economic news: Sales of new motor vehicles fell 3.4% in January, reversing a rise in December. ABS data shows 86,636 vehicles were sold on a seasonally adjusted basis, down from 89,728 the month before, which was the highest figure since April 2008.
In company news: Infrastructure services group UGL Ltd (ASX:UGL) has booked a 15% fall in first half profit to $55 million. The company says the result was in line with expectations and followed a 10.6% drop in revenue to just over $2 billion. However, managing director and CEO Richard Leupen says the company is in a strong position for the rest of the year, boasting a near record order book and a historically high bidding pipeline. Shares in UGL rose 3.41% to $14.55.
Internet service provider iiNet Ltd (ASX:IIN) has reported a half-year profit of $12.1 million, improving 6% on its result from the same period a year before. Underlying earnings before interest, tax, depreciation and amortisation increased 20% to $37.4 million. The strong result has reaffirmed the company’s 2010 full year guidance of underlying earnings of between $75 and $80 million. The company says it will now look at furthering its acquisition opportunities. Shares in iiNet are steady at $2.18.
Turning now to market indices: The best performing sector at midday is the Materials index, up 270 points at 12,236. Shares in Mirabela Nickel gained 8.53% to $2.10. Shares in Cudeco and Equinox Minerals are also higher.
The worst performing sector at midday is the Telco Services index, down 41 points to 1,042. Shares in Telstra declined 4.11% to $3.03. While shares in Bigair Group and Reverse Corp are also lower at noon.
Looking to New Zealand and the NZSX50 is 17 points higher.
Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is top of the list with stock up 0.43% at $2.35 followed by; Fletcher Building, Westpac and Goodman Property Trust.
To gold and the dollar: Gold is trading at US$1,129.75 an ounce and the Aussie dollar is trading at 90.12 US cents.
