The local share market is higher at midday driven up by the miners like giants BHP and Rio Tinto on the back of stronger commodities, with GDP figures showing the Australian economy grew at a brisk pace in the fourth quarter.
The S&P/ASX200 index is 36 points higher at 4,738 and on the futures market the SPI200’s up 38 points.
In economic news: The ABS says GDP in the fourth quarter rose 0.9%, up 2.7% compared to the fourth quarter of last year.
In company news: Reuters reports that Macquarie Group (ASX:MQG) is planning to float oil and gas services company Miclyn Express Offshore. The shares are reportedly being priced at between $1.85 and $2.30 a share and could raise up to $365 million. Reuters says Macquarie is to reduce its interest in the company to 30% from 59%, while another entity Ray Rider is to cut its stake from 40% to 10%. Miclyn provides service vessels to the oil and gas industry in Southeast Asia, Australia and the Middle East. Shares in Macquarie Group gained 0.15% to $46.24.
Mid-tier nickel sulphide producer Western Areas NL (ASX:WSA) and Finnish joint venture partner Magnus Minerals are looking for a partner for six nickel/zinc/copper exploration projects located in central Finland. The company says it has appointed UBS Australia and Rothschild Australia to find a suitable candidate to fund a three stage program including exploration, drilling, metallurgical test work, feasibility studies and potential project development. Western Areas says depending on the outcome of the search for a partner and on results from ongoing drilling programs in Finland, the joint venture may consider listing a company to advance the projects. Shares in Western Areas rose 3.98% to $4.70.
Turning now to market indices: Majority of sectors are in positive territory at midday however stronger commodity prices are driving resource stocks up with the Materials sector the best performing, up 217 points at 12,244. Shares in Lihir Gold rose 4.32% to $2.90. Shares in BlueScope Steel and BHP Billiton are also higher.
One of the only sectors in the red at midday is the Utilities index, down 4 points to 4,360. Shares in Spark Infrastructure fell 5.38% to $1.32. While shares in Duet Group and Challenger Infrastructure Fund are also lower at noon.
Looking to New Zealand and the NZSX50 is 19 points higher. Taking a look at the top 4 stocks by turnover: At the top is Telecom of New Zealand with stock up 1.83% at $2.23 followed by; Fletcher Building, ANZ and Guinness Peat.
To gold and the dollar: Gold is trading at US$1,136 an ounce and the Aussie dollar is trading at 90.58 US cents.
