The local share market has edged higher at midday investor confidence lifting on some positive economic data out of the US, but caution still remains as debt problems in Europe continue to linger.
The S&P/ASX200 index is 20 points higher at 4,771 and on the futures market the SPI200’s up 29 points.
In economic news: The Australian Industry Group/Housing Industry Association Australian performance of construction index fell 4.9 points to a read of 52.8 in February. However the result remained above the 50 mark indicating expansion in the sector.
In company news: Gold miner Lihir Gold Ltd (ASX:LGL) has agreed to sell its Ballarat mine in Victoria to Castlemaine Goldfields Ltd for $4.5 million in cash plus a 2.5% royalty interest in future production capped at $50 million. Lihir says the sale is subject to certain conditions including Castlemaine shareholders approving the issue of new equity to raise a minimum of $20 million. Castlemaine has indicated it intends to take the Ballarat operation forward as an exploration project and will therefore cease mining and processing for the immediate future. In preparation for the transition to new ownership, the operation will be wound down and placed on care and maintenance from today. Shares in Lihir Gold are steady at $2.94.
Coal, iron ore and manganese miner Aquila Resources Ltd (ASX:AQA) says the West Australian Government has approved the development of green field port facilities at Anketell Point on the West Pilbara coast. The news comes after the WA Government pledged $3.5 million towards the construction of a new port at Anketell Point. The development of the port is being driven by Aquila, Fortescue Metals Group and Metallurgical Corporation of China. Fortescue is planning to use the new port to export iron ore from its Solomon mine south of Anketell Point. Shares in Aquila Resources rose 1.76% to $10.40.
Turning now to market indices: The best performing sector at midday is the Health Care index, up 106 points at 8,721. Shares in CSL rose 1.9% to $35.46. Shares in Sonic Healthcare and ResMed are also higher.
The worst performing sector at midday is the Consumer Staples index, down 14 points to 7,854. Shares in AWB fell 3.18% to $1.065. While shares in Goodman Fielder and Metcash are also lower at noon.
Looking to New Zealand and the NZSX50 is a point higher. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand stock steady at $2.26 followed by; Mainfreight, Guinness Peat, and Lend Lease.
To gold and the dollar: Gold is trading at US$1,131.70 an ounce and the Aussie dollar is trading at 90.07 US cents.
