The local share market is higher at midday tracking a positive session on Wall St overnight as concerns for global economic growth eased and stronger base metals prices boosted resource stocks like the major miners BHP and Rio Tinto.
The S&P/ASX200 index is 46 points higher at 4,551 and on the futures market, the SPI200’s up 32.
In economic news: The Westpac/Melbourne Institute leading index of economic activity slowed to 7.6% in April from an annualised growth rate of 8.8% in March. Despite the easing, the index indicates a likely solid recovery in the Australian economy.
And data released by the ABS shows a 4.3% rise in dwelling unit starts in the first quarter compared to fourth quarter of last year.
In company news: Mining giant Rio Tinto Ltd (ASX:RIO) is to invest US$469 million in developing its Kennecott Eagle nickel and copper mine in the US after gaining environmental approval for the operation. The miner says construction of the mine and mill will begin this year and first production is expected in late 2013. CEO of copper, Andrew Harding, says the long term demand outlook remains strong for both nickel and copper, and that bringing Eagle on stream will give Rio greater benefit from that growth. Rio says Eagle will produce nickel concentrates containing an average 17,300 tonnes a year, and copper concentrates containing an average 13,200 tonnes a year over six years. Shares in Rio Tinto gained 1.48% to $70.45.
Becton Property Group Ltd (ASX:BEC) has sold the Mernda Town Centre development site in Melbourne to Woolworths Ltd (ASX:WOW) for $31 million. The site has approval, over several stages, for the development of a 40,000 square metre town centre. The sale also includes Becton’s continued involvement in the project as development manager, subject to formal agreement. CEO Matthew Chun says the sale enables the company to reduce its corporate debt and also enables the group to potentially participate in the continued development of the project and earn future income streams from the development management work that will be required. Shares in Becton Property Group rose 6.38% to $0.05.
Turning now to market indices: Majority of sectors are in the black at midday, however, the sector with the biggest gain is the Consumer Discretionary index, up 34 points to 1,552. Shares in News Corp are 4.92% higher at $18.77. Shares in Austar and Fairfax Media are also higher.
One of the only sectors in the red at midday is the Telco Services index, down 2 points to 1,071. Shares in Hutchison Telecommunications lost 1.06% to $0.093, shares in Telstra are also lower while shares in Reverse Corp are flat.
Looking to New Zealand and the NZSX50 is 37 points stronger. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand with stock up 2.11% at $1.94 followed by; Guinness Peat Group, AMP NZ Office Trust, and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,233.05 an ounce and the Aussie dollar is trading at 86.5 US cents.
