Following a positive lead from Wall Street overnight, the local share market is stronger at midday as news of Spain’s plan to cut spending gave investors hope that Europe is dealing with its debt situation.
The S&P/ASX200 index is 51 points higher at 4,624 and on the futures market, the SPI200’s up 47.
In economic news: Figures released by the ABS today show that the unemployment rate remained steady at 5.4% in April after March was revised up from 5.3% to 5.4%. Total employment rose by 33,700 in the month, more than the expected 20,000.
In company news: AMP Ltd (ASX:AMP) CEO Craig Dunn told shareholders at the company’s annual general meeting today that its merger proposal for AXA Asia Pacific Holdings (ASX:AXA) remains strategically attractive and would certainly accelerate the company’s growth strategy further. Mr Dunn says the company is pleased with the ACCC’s decision to block a rival bid made by NAB. He told investors that the transaction still has some way to go, and the company’s immediate focus is to work through the relevant regulatory matters. While merger and acquisition activity can provide a useful means to accelerate the company’s growth strategy, Mr Dunn says AMP does not see it as a strategic necessity. AMP shares rose 2.23% to $5.97.
Wind farm developer Infigen Energy (ASX:IFN) says it intends to start buying back some of its stock in the next week. While the company did not say how much, it did say it had around $170 million of uncommitted cash. In other news, Infigen says it has received amended development approval for the Woodlawn wind farm in NSW, totalling 42 mega watts. Shares in Infigen Energy gained 3.55% to $0.875.
Turning now to indices: All sectors are in positive territory at midday, however the sector with the biggest gain is the Real Estate Investment Trust index, up 15 points at 886. Shares in Westfield Group are up 2.51% at $12.68. Shares in Mirvac Group and Stockland are also higher at noon.
One of the sectors with smallest gains is the Consumer Discretionary index, up 17 points to 1,607. Shares in Flight Centre have lost 1.8% to $18.53, while shares in West Australian Newspapers Holdings and Fleetwood Corp are also lower.
Looking to New Zealand and the NZSX50 is up 22 points. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand with stock up 0.95% at $2.12 followed by Telstra, Fletcher Building and ANZ.
To gold and the dollar: Gold is trading at US$1,236.30 an ounce and the Aussie dollar is trading at 89.69 US cents.
