The local share market has inched higher at midday, investors cautious after mixed leads from offshore markets but shares in the miners edging up on expectations for stronger iron ore and coal prices.
The S&P/ASX200 index is 5 points higher at 4,825 and on the futures market the SPI200’s up 7 points.
In economic news, a new survey shows consumer price pressure fears were flat in March. The Melbourne Institute Survey of Consumer Inflationary Expectations reveals the median expectation remained at 3.2%. But the number of people who expect prices to remain stable over the coming year fell to 18.6%, down from 21.7% in February.
In company news: Shares in internet service provider iiNet Ltd (ASX:IIN) have gone into a trading halt as it prepares a response to a report that the company is planning to take over one of its rivals. The Australian Financial Review reports that the company has agreed to buy Netspace for between $60 and $75 million, and is due to make the announcement within the next two or three weeks. The Perth-based company’s shares will remain in a trading halt until March 15 or until the company makes an announcement about the speculative deal. Shares in iiNet last traded at $2.23.
AGL Energy Ltd (ASX:AGK) says it is open to deals with Royal Dutch Shell if it succeeds in acquiring Arrow Energy Ltd. The company, which shares the Moranbah coal seam gas field with Arrow, has told the Australian Financial Review that it will consider selling its stake in the gas field in the event of an offer from Shell. CEO Michael Fraser says the company is also likely to accept any offers to sell Moranbah gas into Shell’s proposed LNG facilities. International energy giants Shell and PetroChina made a joint $3.3 billion bid for Arrow on Monday, offering shareholders $4.45 in cash per share, plus a share in a new entity comprising Arrow’s international business. Analysts have valued AGL’s 50% stake in the Moranbah gas field at $1.4 billion. Shares in AGL Energy are 0.47% lower at $14.92.
Turning now to market indices: Most sectors are in positive territory at midday. The best performing sector is the Telco Services index, up 21 points at 1,048. Shares in Reverse Corp rose 2.86% to $18. Shares in Telstra are higher on hopes it won’t be forced to split, and SingTel shares are also up at noon.
The worst performing sector is the Industrials index, down 16 points to 3,970. Shares in Alesco Corporation are down 2.24% to $3.05. While shares in Downer EDI and Transurban Group are also lower at midday.
Looking to New Zealand and the NZSX50 is 1 point lower. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand, stock is steady at $2.24 followed by; AMP NZ Office Trust, Fletcher Building and Kiwi Income Property Trust.
To gold and the dollar: Gold is trading at US$1,108.60 an ounce and the Aussie dollar is trading at 91.32 US cents.
