The local share market is marginally higher at midday, financial stocks gaining after a late rally on Wall Street and Cape Lambert Resources’ shares climbing on a deal to sell its Lady Annie copper mine.
The S&P/ASX200 index is 7 points higher at 4,822 and on the futures market the SPI200’s up 4 points.
In company news: Shares in Cape Lambert Resources Ltd (ASX:CFE) have surged on the miner’s announcement of the sale of its Lady Annie copper mine to China Sci-Tech Holdings Ltd for $135 million. The company says it will return 8 to 10 cents per share from the proceeds of the sale to shareholders. Cape Lambert tried to sell the Lady Annie project through an initial public offering but called off the sale early last month due to adverse market conditions. Hong Kong-listed China Sci-Tech, which mainly invests in financial instruments and property, bought Oz Minerals’ Martabe gold and silver project in Indonesia for $211 million last year. Shares in Cape Lambert Resources rose 11.24% to $0.495.
Shares in TPG Telecom Ltd (ASX:TPM) have been placed in a trading halt while shareholders of Pipe Networks Ltd (ASX:PWK) vote on whether to approve the company’s takeover offer. Shareholders will consider TPG’s proposal by way of a scheme of arrangement at a meeting being held today. TPG has so far bought 2.8 million shares from Pipe and is offering $6.30 per share for the rest of the company. The deal values Pipe’s equity at $373 million and the Pipe board has recommended shareholders approve the scheme. TPG says it has requested the trading halt to prevent people at the meeting from being more informed than the market. The internet service provider says it expects Pipe to release the result of the meeting by close of business today. Shares in TPG Telecom last traded at $1.75.
Turning now to market indices: The best performing sector is the Financials excluding the Real Investment Trust index, up 21 points at 5,642. Shares in ASX rose 1.35% to $36.10. Shares in AXA and QBE are also up at noon.
The worst performing sector is the Industrials index, down 12 points to 3,950. Shares in Brambles are down 2.81% to $7.26. While shares in Bradken and Intoll are also lower at midday.
Looking to New Zealand and the NZSX50 is 2 points lower. Taking a look at the top 4 stocks by turnover: Heading the list is Fletcher Building, stock is up 0.12% at $8.12 followed by; Telecom of New Zealand, Nuplex Industries and Fisher & Paykel Healthcare.
To gold and the dollar: Gold is trading at US$1,111.20 an ounce and the Aussie dollar is trading at 91.58 US cents.