Aussie stocks are higher at midday, bolstered by strength in global equity markets and a rise in US stocks overnight after US Federal Reserve Chairman Ben Bernanke promised to keep interest rates low.
The S&P/ASX200 index is 28 points higher at 4,676 and on the futures market the SPI200’s up 23 points.
In economic news: ABS data released this morning reveals private new capital expenditure rose 5.5% in the December quarter, compared with the previous quarter. Economists had forecasted it to rise just 1.5%.
In company news: Vitamin and health supplement manufacturer Blackmores Ltd (ASX:BKL) has delivered a first-half profit of $12.8 million, a 7% improvement on the same period a year before. CEO Christine Holgate says the positive half-year result reflects a strong performance from the group’s Australian and Asian operations, as well as new product innovation. Ms Holgate says the company’s Australian sales rose by 14%, representing growth of about double that of the industry, and it added over 250 distribution points in the first half. Its Asian sales increased by 11%. The company has declared a fully franked interim dividend of 42 cents per share, up 8% on last year. Shares in Blackmores Ltd gained 2.44% to $21.
Property developer Lend Lease Ltd (ASX:LLC) has launched an $806 million rights issue to finance new projects and stop its credit rating from falling. The announcement comes as the company reports a profit of $204.9 million for the first half of fiscal 2010, reversing a loss of $596.4 million for the same period a year ago. The new equity should allow the company to pursue its $12 billion project pipeline, which includes the revival of London’s Elephant & Castle area and Sydney’s waterfront Barangaroo project. It is offering five new shares for every 22 held at $7.70 a piece – a 20% discount on Wednesday’s closing price. CEO Steve McCann says it’s the right time to deploy capital as the company is near the bottom of the cycle. Lend Lease shares are in a trading halt. Shares last traded at $9.67.
Turning now to market indices: The best performing sector at midday is the Utilities index, up 45 points at 4,280. Shares in AGL rose 1.67% to $14. Shares in Challenger Infrastructure Fund and APA Group are also higher.
The worst performing sector at midday is the Staples index, down 20 points to 7,545. Shares in Goodman Fielder fell 3.56% to $1.49. While shares in Metcash and Foster’s are also lower at noon.
Looking to New Zealand and the NZSX50 is 21 points higher. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand with stock up 0.43% at $2.33 followed by; ANZ Bank, Fletcher Building and Goodman Property Trust.
To gold and the dollar: Gold is trading at US$1,099.30 an ounce and the Aussie dollar is trading at 89.5 US cents.
