In a welcome comeback, Aussie shares are higher at noon, on the news the European Union has created an $863 billion emergency aid fund to ensure Greece’s debt crisis does not spread to the rest of the world.
The major banks like the Commonwealth Bank and ANZ are leading the gains, while shares in the miners have also recovered after plunging last week. The S&P/ASX200 index is 81 points higher at 4,562 and on the futures market, the SPI200’s up 93. In economic news: Business confidence softened last month as a result of rising interest rates and weaker retail sales. National Australia Bank’s monthly measure of business confidence fell 3 points in April to a read of 13. Business conditions for April also fell to a read of 8 from 13. And job ads fell 1.2% in April according to ANZ’s monthly survey. The number of jobs advertised dropped to 160,660 following a 1.8% gain in March.
In company news: Macarthur Coal Ltd (ASX:MCC) has received a lower takeover proposal from US coal giant Peabody Energy. Peabody is now offering Macarthur shareholders $15 cash for each share, down from a previous offer of $16 per share. The revised takeover bid values Macarthur at $3.815 billion, compared to the $4.069 billion it would have been worth with the original offer. Macarthur has advised shareholders to take no action in relation to the new offer. Macarthur Coal shares have lost 1.39% to $13.50.
And Liquefied Natural Gas Ltd (ASX:LNG) has signed an Agreement to Lease with Gladstone Ports Corporation Ltd for its planned LNG project at Fisherman’s Landing in Queensland. The company says the major condition of the agreement is the procurement of gas supply as feedstock for the 3 million tonne per annum project. This condition must be satisfied by July 1 next year, after which LNG has a further three months to satisfy any outstanding conditions. Managing Director Maurice Brand says LNG is confident of meeting all other conditions of the agreement this year and considers the signing of the agreement a milestone for the company. Shares in Liquefied Natural Gas are 17.65% higher at $0.40.
Turning now to indices: The best performing sector at midday is the Financials excluding the Real Estate Investment Trust index, up 154 points at 5,362. Shares in Commonwealth Bank are up 3.55% at $54.88. Shares in ANZ and National Australia Bank are also higher at noon.
The worst performing sector is the Consumer Discretionary index, down 2 points to 1,561. Shares in Nick Scali have lost 12.67% to $1.31, while shares in BSA and Webjet are also lower.
Looking to New Zealand and the NZSX50 is up 14 points. Taking a look at the top 4 stocks by turnover: Top of the list is Fletcher Building. Stock is up 0.25% at $7.97 followed by; Telecom of New Zealand, Sky Network Television and AMP.
To gold and the dollar: Gold is trading at US$1,202.40 an ounce and the Aussie dollar is trading at 90.1 US cents.
