After a shaky start, the Australian share market has gained ground at midday – shares in the miners lifting on hopes iron ore contract price negotiations will boost prices in the coming year.
The S&P/ASX200 index is 7 points higher at 4,792 and on the futures market the SPI200’s up 2 points.
In economic news: The minutes of the RBA’s monetary policy meeting on March 2 reveal that mounting evidence the economy was quickly returning to normal drove its decision to raise interest rates this month. The minutes imply that the central bank will continue to nudge rates higher over the medium term, but is in no immediate hurry and may spare homeowners another rise until May. The underlying inflation rate is expected to fall from its current 3.25% in 2009 to 2.5% in the year ahead.
In company news: Seven Network Ltd (ASX:SEV) has been given the green light to go ahead with a meeting for shareholders to vote on the proposed merger of the company’s broadcast interests with WesTrac. The Federal Court approved the meeting this morning, which is scheduled for April 20. The court heard that an independent report valued the proposed merged company, to be called Seven Group Holdings, at between $7.09 and $8.57 a share. Seven shares entered a trading halt this morning ahead of the release of the scheme of arrangement documents to shareholders later today. The matter will return to court on April 23. Shares in Seven last traded at $7.95. Zinc miner CBH Resources Ltd (ASX:CBH) has received an alternative takeover offer to the one made by Belgian metals group Nyrstar. Shares in the company entered a trading halt today pending an announcement about the competing bid. The Sydney-based miner says it expects to make an announcement before the start of trading on Thursday. Nyrstar is offering 19.5 cents per CBH share and $750 per convertible note in a bid worth a total of $290 million. CBH Resources rejected Nyrstar’s initial takeover offer, which valued the company at $213 million. Shares in CBH Resources last traded at $0.17.
Turning now to market indices: The best performing sector at midday is the Telco Services index, up 20 points at 1,061. Shares in Telstra rose 2.63% to $3.12. Shares in SingTel and iiNet were also higher at noon.
The worst performing sector is the Energy index, down 121 points to 15,332. Shares in AWE are down 2.58% to $2.64. While shares in Origin Energy and Oil Search are also lower at midday.
Looking to New Zealand and the NZSX50 is 14 points lower. Taking a look at the top 4 stocks by turnover: Top of the list is Telecom of New Zealand, stock down 1.36% at $2.18, followed by Fletcher Building, Sky Network and Fisher & Paykel Appliances.
To gold and the dollar: Gold is trading at US$1,109.55 an ounce and the Aussie dollar is trading at 91.3 US cents.
