The local share market has responded positively to news that Julia Gillard is now Prime Minister with investors hoping Ms Gillard will take a softer approach to the government’s controversial Resources Super Profits Tax.
The miners like majors BHP and Rio are leading the gains at midday, trading higher on expectations of significant changes to proposed the mining tax.
RBC senior economist Su-Lin Ong says the Aussie dollar is also expected to benefit from the removal of political uncertainty surrounding the Labor Party.
The S&P/ASX200 index is 18 points higher at 4,504 and on the futures market, the SPI200’s up 26.
In company news: Macquarie Group Ltd (ASX:MQG) shares took a tumble today after the investment bank said that market conditions are becoming increasingly uncertain and having a negative impact on parts of its business. However, the bank says it is too early to evaluate the implications for its full year fiscal 2011 results. A number of key management staff have left the bank recently, yesterday it was revealed that Andrew Low, chief operating officer of Macquarie Capital, has quit to start his own Asia Pacific financial services outfit. Despite this though, chief financial officer Greg Ward says subject to economic activity continuing to increase across major markets, Macquarie expects continued growth in revenue and earnings across most businesses over time. Shares in Macquarie Group fell 4.12% to $40.91.
AGL Energy Ltd (ASX:AGK) says it plans to fast track its Macarthur wind farm development after changes to the Renewable Energy Target scheme were approved by the Senate. The energy company says the changes will provide greater investment certainty for the renewable industry. Managing director Michael Fraser says the changes will give the industry certainty to make long-term investment decisions to transform the nation’s energy infrastructure to meet the target of sourcing 20% of the nation’s electricity from renewable sources by 2020. Mr Fraser says with AGL’s joint venture partner Meridian Energy, the company now plans to fast track the final approvals for the development of the Macarthur wind farm which, when completed, will be one of the largest wind farms in the southern hemisphere. Shares in AGL Energy rose 1.36% to $14.91.
Turning now to market indices: The best performing sector at midday is the Materials index, up 181 points to 12,079. Shares in Macarthur Coal are 5.78% higher at $12.27. Shares in Iluka Resources and Atlas Iron are also higher at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 14 points to 873. Shares in Bunnings Warehouse fell 4.98% to $1.91, while shares in Ardent Leisure and Stockland are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 3 points lower. Taking a look at the top 4 stocks by turnover: Telstra heads the list with stock down 0.74% at $4.02 followed by; Telecom of New Zealand, Ryman Healthcare and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,236.10 an ounce and the Aussie dollar is trading at 87.5 US cents.
