The local share market is stronger at midday thanks to good gains in the major banks like NAB and the Commonwealth Bank, and resource stocks. Robust earnings in their US peers and fading fears fir the Goldman Sachs fraud charges are helping to boost the banks today.
The S&P/ASX200 index is 19 points higher at 4,934, and on the futures market, the SPI200’s up 30.
Looking at economic news: In the minutes from the RBA’s April 6 monetary policy meeting, the central bank says it thought it prudent to raise rates in April as strength in the economy continued to shine through, and said that rates were still a little below average and would need to rise further.
In company news: Agricultural chemicals maker Nufarm Ltd (ASX:NUF) has launched a $250 million fully underwritten entitlement offer. The company says major shareholder Sumitomo Chemical Company will take up its full entitlement in the raising to make sure it retains a 20% stake in the company. Under the offer eligible shareholders can subscribe for one new Nufarm share for every five existing Nufarm shares at a price of $5.75 a share. Managing director Doug Rathbone says the equity raising will be used to pay down debt, strengthen the company’s balance sheet and place the company in a better position to pursue growth opportunities. Shares in Nufarm are in a trading halt and last traded at $7.75.
Rio Tinto Ltd (ASX:RIO) has delayed its annual general meeting in Melbourne due to unprecedented travel restrictions in Europe. Ash from a volcanic eruption in Iceland has caused havoc for international airlines as a flight ban across Europe remains in place. Rio says given these extraordinary circumstances, with its CEO, chairman and directors stuck in London, the miner has decided to postpone the meeting until Wednesday May 26, 2010. Shares in Rio Tinto rose 0.8% to $78.58.
Turning now to market indices: The best performing sector at midday is the Energy index, up 128 points to 15,865. Shares in Centennial Coal rose 4.32% to $4.59. Shares in Aquila Resources and Linc Energy are also higher at noon.
The worst performing sector is the Health Care index, down 18 points to 9,099. Shares in Biota Holdings fell 3.2% to $2.12, while shares in Healthscope and Sonic Healthcare 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 down 0.46% at $2.16. Following the Telco is Fletcher Building, Nuplex Industries and Auckland Airport.
To gold and the dollar: Gold is trading at US$1,137.90 an ounce and the Aussie dollar is trading at 92.71 US cents.
