Following positive leads from US and European markets overnight, Aussie stocks are marginally higher at midday, investors cautious as they await the RBA’s decision on interest rates. According to Reuters the market has priced in a 60% chance of the central bank lifting rates by 25 basis points to 4%.
The S&P/ASX200 index is 6 points higher at 4,693 and on the futures market the SPI200’s up a point.
In economic news: According to the ABS, the Governments public spending rose 3.8% in the fourth quarter, versus forecasts for around a 2.7% rise.
In other data from the Bureau, building approvals fell 7% in January from the month before. And retail sales rose 1.2% for the month of January compared to December, more than forecasts for around a 0.5% rise.
In company news: Virgin Blue Holdings Ltd (ASX:VBA) has appointed former Qantas executive John Borghetti as CEO. Mr Borghetti will step into the role on March 8 after current CEO Brett Godfrey announced in July 2009 his intention to step down from the role this year. Mr Borghetti was Executive General Manager of Qantas over the six years before leaving the group after missing out on the top job and was responsible for over $10 billion in revenue a year. Shares in Virgin Blue rose 0.79% to $0.635.
Agricultural chemicals maker Nufarm Ltd (ASX:NUF) says it expects to post a first half loss of $40 million when it releases its results on March 30. The company says the result reflects the fact that some of the negative impacts that contributed to a disappointing full year result last year have extended into the first half of the current year. However Managing Director Doug Rathbone says the company is forecasting a headline profit of between $120 million and $140 million in the second half of the year. Mr Rathbone says the projected second half recovery is consistent with what the company has been able to achieve in previous years and is based on realistic assumptions. Nufarm shares fell 4.72% to $9.29.
Turning now to market indices: The best performing sector at midday is the Real Estate Investment Trust index, up 10 points at 884. Shares in Mirvac Group rose 1.97% to $1.555. Shares in Westfield Group and Stockland are also higher.
Worst performing sector at midday is the Telco Services index, down 6 points to 1,005. Shares in Telstra fell 0.68% to $2.92. While shares in iiNet and Macquarie Telecom Group 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: At the top is Telecom of New Zealand with stock up 1.37% at $2.22 followed by; Auckland Airport, Telstra and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,118.20 an ounce and the Aussie dollar is trading at 90.02 US cents.
