The local share market is higher at midday with resource stocks helping to lift the market. Positive economic data out of the US overnight is driving optimism not only for the health of the US economy, but the global recovery and demand for commodities.
The S&P/ASX200 index is 34 points higher at 4,942 and on the futures market, the SPI200’s up 22.
In economic news: ANZ’s job advertisements survey showed that total job ads rose 1.8% in March, 8% higher than the same time last year.
In company news: Shares in Gloucester Coal Ltd (ASX:GCL) have been placed in a trading halt as the company waits to receive a proposal offer from major shareholder Noble Group. Macarthur Coal Ltd (ASX:MCC), who currently has a takeover offer on the table for Gloucester, also placed its shares in a trading halt pending an announcement regarding Peabody Energy’s interest in the company. Last week Macarthur rejected a $3.3 billion takeover bid from US based Peabody Energy. Macarthur plans to issue shares to Noble Group at $9.70 a share, with Noble saying a merger between Gloucester and Macarthur has been unanimously supported. Gloucester Coal shares last traded at $9.31, and Macarthur Coal shares last traded at $14.87.
Aquila Resources Ltd (ASX:AQA) has submitted a Public Environmental Review describing the proposed development of Anketell Point, west of Wickham and the existing port at Cape Lambert, as part of the West Pilbara Iron Ore Project. The company says it has already spent around $145 million on the project to complete the necessary geological, technical, commercial and environmental studies. Aquila holds a 50% interest in the project with both Fortescue Metals Group and China Metallurgical Corp expressing interest in the project. The miner says stage 1 of the development can now go ahead with first shipments scheduled to leave the port by 2013. Shares in Aquila Resources rose 1.97% to $10.86.
Turning now to market indices: The best performing sector at midday is the Materials index, up 209 points at 13,276. Shares in Andean Resources added 10.68% to $3.11. Shares in Atlas Iron and Mirabela Nickel are also higher at noon.
The worst performing sector is the Health Care index, down 36 points to 8,947. Shares in Sirtex Medical dropped 1.17% to $5.93, while shares in Sonic Healthcare and CSL are also lower.
Looking to New Zealand and the NZSX50 is 23 points higher. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand with stock up 2.78% at $2.22 followed by; Telstra, Fisher & Paykel Healthcare and Auckland Airport.
To gold and the dollar: Gold is trading at US$1,128.80 an ounce and the Aussie dollar is trading at 91.84 US cents.
