The local share market has bounced back from earlier losses and is trading higher at midday with financial stocks leading the gains and hopes for a deal on the government’s proposed mining tax lifting investor sentiment and overshadowing concern for the global economic recovery.
The S&P/ASX200 index is 14 points higher at 4,399 and on the futures market, the SPI200’s up 16.
In company news: Engineering and infrastructure company Downer EDI Ltd (ASX:DOW) says it has ample liquidity despite media reports that claim the company withheld payments to suppliers in order to reach cash flow targets in its yearly accounts. In a statement to the ASX today Downer says it has in excess of $600 million in available facilities and cash balances. The company also says its Works Australia division expects to pay all creditors as per agreed creditor terms whilst meting internal cash targets. Downer says the $35 million referred to in articles published by the Sydney Morning Herald and The Age, related to identifiable collectable debtors, not creditors as inferred, and a significant portion of this amount is expected to be received by year end. Shares in Downer EDI fell 5.51% to $3.77.
MAp Group (ASX:MAP) owned Sydney Airport has issued $175 million of medium term notes at a margin of 265 basis points above the bank bill swap rate. MAp says the funds will be used to repay existing debt and the issue will also involve the buyback of $120 million in medium term notes largely due in November 2011. Westpac was the sole lead arranger for the transaction. Shares in MAp Group are steady at $2.78.
Turning now to market indices: The best performing sector at midday is the Financials excluding Real Estate Investment Trust index, up 23 points to 4,912. Shares in Bendigo & Adelaide Bank are 1.67% higher at $8.50. Shares in Platinum Asset Management and Westpac are also higher at noon.
The worst performing sector at midday is the Industrials index, down 12 points to 3,256. Shares in Downer EDI price as mentioned before, while shares in Transfield Services and Transpacific Industries Group are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 11 points lower. Taking a look at the top 4 stocks by turnover: Top of the list is Telecom of New Zealand with stock down 1.05% at $1.88 followed by; Westpac, Auckland International Airport, and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,238.60 an ounce and the Aussie dollar is trading at 87.16 US cents.
