Aussie stocks have risen above the 5,000 mark in early trade this morning and are trading higher at midday. Strong corporate results out of the US, retail sales data and growth in China helping to boost investor confidence. The last time the benchmark index rose above the 5,000 level was back in September 2008.
The S&P/ASX200 index is 23 points higher at 5,017, and on the futures market, the SPI200’s up 23.
In economic news: The Westpac/Melbourne Institute survey of consumer inflationary expectations showed that the median expectation for inflation rose to a read of 4.1% in April, up from 3.2% in March. The result indicates that consumers believe inflation is likely to rise above the 2 - 3% band targeted by the RBA.
In company news: Takeover target Gloucester Coal Ltd (ASX:GCL) says it has reached terms with its Asian customers to move to quarterly contracts and also achieved a 100% increase in prices. CEO Barry Tudor says the new coking coal prices represent the second highest price ever achieved for the company’s coking coal. Mr Tudor says the price confirms the high value customers place on Gloucester’s coking coal properties and the continued strong demand from both existing and new customers in Asia. Gloucester Coal shares rose 1.16% to $12.19.
Macarthur Coal Ltd (ASX:MCC) has advised shareholders to reject a sweetened takeover bid from New Hope Corporation Ltd (ASX:NHC) saying it does not represent an adequate premium for control of the company. New Hope’s revised offer added a cash component to its previous offer, giving Macarthur shareholders the option of cash or shares. Under the revised offer, Macarthur shareholders would receive 2.7 New Hope shares for every Macarthur share or $14.5 cash for each share, capped at $950 million total. Macarthur says it continues to recommend shareholders vote in favour of the proposal to acquire Gloucester Coal and Noble Group’s interest in the Middlemount joint venture. Shares in Macarthur Coal gained 1.55% to $15.74.
Turning now to market indices: The best performing sector at midday is the Real Estate Investment Trust index, up 9 points to 890. Shares in Bunnings Warehouse added 1.79% to $1.995. Shares in Mirvac Group and CFS Retail Property Trust are also higher at noon.
The worst performing sector is the Health Care index, down 124 points to 9,057. Shares in Sonic Healthcare fell 2.22% to $14.09. While shares in CSL and Biota Holdings are also lower.
Looking to New Zealand and the NZSX50 is 12 points stronger. Taking a look at the top 4 stocks by turnover: At the top is Telecom of New Zealand, stock up 0.45% at $2.25 followed by Fletcher Building, Fisher & Paykel Healthcare and ANZ.
To gold and the dollar: Gold is trading at US$1,157.95 an ounce and the Aussie dollar is trading at 93.48 US cents.
