Despite a negative lead from Wall St overnight, the local share market is trading in positive territory at midday with gains the miners supporting the market on higher metals prices.
Strong output and trade data out of China and a drop in Australia’s unemployment rate is also giving the local market a boost.
The S&P/ASX200 index is 37 points higher at 4,423 and on the futures market, the SPI200’s up 22.
In economic news: According to labour force data released by the ABS today, Australia’s unemployment rate unexpectedly fell to 5.2% in May, down from 5.4% in April. The Bureau says employment rose by 26,900 for the month.
And the Melbourne Institute survey of consumer inflationary expectations showed a fall to 3.4% in June from 3.6% in May.
In company news: Challenger Diversified Property Group (ASX:CDI) says it expects to pay shareholders an interim dividend of 2.15 cents a share for the six months to June 30, 2010. Challenger also says independent and internal valuations of its entire property portfolio are expected to show a rise of 2%, with strong increases in properties with long leases in place. After revaluations, the company says its net tangible assets as at June 30, 2010 are forecast to increase 66 cents per unit, up from 65 cents a unit in the first half. Shares in Challenger Diversified Property Group fell 1.9% to $0.515.
Iron ore company Brockman Resources Ltd (ASX:BRM) has appointed former Rio Tinto Ltd (ASX:RIO) managing director Barry Cusack as non-executive chairman. Mr Cusack has over 40 years experience in the minerals industry including a career spanning several decades with Rio Tinto. Mr Cusack joins Brockman at a critical time for the company as it prepares to make the transition to iron ore production at its flagship Marillana project in the Pilbara of Western Australia. Brockman’s founding chairman Ross Norgard will assume the role of deputy chairman. Shares in Brockman Resources dropped 0.32% to $3.16.
Turning now to market indices: All sector’s are in positive territory at midday, however the sector with the biggest gain is the Energy index, up 236 points to 14,654. Shares in Caltex Australia are 5.75% higher at $10.85. Shares in Australian Worldwide Exploration and Riversdale Mining are also higher.
The sector with the smallest gain at noon is the Health Care index, up 3 points to 8,438. Shares in ResMed lost 0.92% to $7.51, while shares in Ramsay Health Care and Ansell are also lower.
Looking to New Zealand and the NZSX50 is 20 points higher. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand tops the list, stock up 2.21% at $1.85, followed by ANZ, AMP, and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,230.80 an ounce and the Aussie dollar is trading at 83.11 US cents.
