Market at Midday: Stocks edge higher

Market Reports

The local share market has managed to edge higher at midday supported by a rise in commodities prices, merger activity in the resources sector and offshore news that the US Federal Reserve plans to keep interest rates at historic lows near zero for the foreseeable future.

The S&P/ASX200 index is 10 points higher at 4,964 and on the futures market, the SPI200’s up 7.

In company news: Global miner BHP Billiton has recommenced loading ships with coal at Hay Point coal terminal in Queensland after Cyclone Ului ripped through the area last month. The Australian reports that the closure of Hay Point coal terminal, which is BHP’s main export port for coking coal from its JV operations with Mitsubishi Corp, added pressure to already tight global coking coal markets. On March 24 the miner declared force majeure on shipments from the port, saying that it could take up to six weeks to return to full operation due to damage caused by the cyclone. Shares in BHP Billiton dropped 0.29% to $44.50.

WestSide Corporation Ltd (ASX:WCL) has attracted two new cornerstone investors to underpin a $64.4 million funding package which will cover the acquisition and development of Anglo American’s 51% interest in the Dawson coal seam gas fields in Queensland’s Bowen Basin. New Hope Corporation Ltd (ASX:NHC) is expected to make a total investment of $23.3 million for a 19.9% stake in WestSide, while Energy Infrastructure Trust is expected to hold at least 13.5% for an outlay of at least $15.8 million. WestSide says New Hope and Energy Infrastructure Trust have agreed to take share placements of new ordinary WestSide shares, which will raise $8.1 million and together underwrite a $56.3 million entitlement offer of new shares to existing shareholders. Shares in WestSide Corporation rallied 19.82% to $0.665.

Turning now to market indices: The best performing sector at midday is the Utilities index, up 43 points at 4,457. Shares in Spark Infrastructure Group added 2.44% to $1.26. Shares in Duet Group and AGL Energy are also higher at noon.

The worst performing sector is the Real Estate Investment Trust index, down 3 points to 869. Shares in Stockland declined 1% to $3.96, while shares in CFS Retail Property Trust and Westfield Group are also lower.

Looking to New Zealand and the NZSX50 is 15 points higher. Taking a look at the top 4 stocks by turnover: Topping the list is Infratil with stock up 2.3% at $1.78 followed by; Telecom of New Zealand, Fletcher Building and Vector.

To gold and the dollar: Gold is trading at US$1,135.20 an ounce and the Aussie dollar is trading at 92.77 US cents.


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