Following a rally on Wall St overnight, Aussie shares are trading higher at midday as positive data out of China rekindled optimism for the global economic recovery. Mining stocks are higher on stronger metals prices and hopes that a compromise will eventually be reached on the proposed mining profits tax.
The S&P/ASX200 index is 54 points higher at 4,489 and on the futures market, the SPI200’s up 54.
In company news: In a letter to shareholders, BHP Billiton Ltd (ASX:BHP) chairman Jac Nasser has answered angry investor questions over the lack of consultation between the Federal Government and miners on the proposed mining profits tax. Mr Nasser says the Government has refused to hold consultation with miners on the nature and design of the proposed super tax and says there has been no acknowledgement of the impact the tax in its current form will have on the industry. Mr Nasser says BHP says it welcomes tax reform but that the proposed mining tax as it is will put Australia’s future prosperity at risk by making Australia’s mineral resources industry globally uncompetitive. Shares in BHP Billiton gained 2.05% to $38.39.
Neptune Marine Services Ltd (ASX:NMS) has upgraded its earnings outlook for the year after a strong second half performance. The company says it expects to report earnings before interest and tax of between $5.5 and $6.5 million for the year to June 30, 2010. Neptune says the improvement during the second half of fiscal 2010 is largely due to increased activity in the Australian offshore energy industry due to the development of major LNG projects in Western Australia. Contract awards and increasing tender activity in the Middle East and signs of a recovery in the US market also attributed to the strong performance. Looking ahead Neptune says it expects to return to growth from fiscal 2011 onwards. Shares in Neptune Marine Services rose 17.14% to $0.205.
Turning now to market indices: Majority of sector’s are in positive territory at midday, however the sector with the biggest gain is the Energy index, up 303 points to 15,011. Shares in Centennial Coal are 4.51% higher at $4.40. Shares in Aquila Resources and Molopo Australia are also higher.
The only sector in the red at noon is the Telco Services index, down 2 points to 1,072. Shares in Reverse Corp lost 3.45% to $0.14, while shares in iiNet and Telstra are also lower.
Looking to New Zealand and the NZSX50 is 32 points higher. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is head of the list, stock up 1.07% at $1.89. Following the Telco is Fletcher Building, Kiwi Income Property Trust, and Sky Network Television.
To gold and the dollar: Gold is trading at US$1,219.60 an ounce and the Aussie dollar is trading at 84.8 US cents.
