Aussie shares are higher at midday, encouraged by a positive close on Wall St overnight. Gains in the miners such as BHP and Rio helped to support the market at noon. The S&P/ASX200 index is up 17 points at 4,421 and on the futures market, the SPI200 is up 16.
In economic news out today: The Westpac Bank-Melbourne Institute leading index of economic activity for May increased 0.4 points to a read of 264.7. To company news: National Australia Bank’s (ASX:NAB) Asset Servicing division says it is in discussions with BNY Mellon Asset Servicing to deepen their partnership and ability to enhance client services. The bank advises that a deeper relationship could result in a joint venture between both companies. Such a venture would combine NAB’s offering in the Australian asset servicing market with BNY Mellon’s extensive global capability. General Manager of NAB Asset Servicing Leigh Watson says the discussions reflect growing client demand for global capability. Shares in National Australia Bank are up 0.2% at $24.45.
AXA Asia Pacific Holdings (ASX:AXA) says it expects operating earnings for the six months to June to rise 5.7%. Operating earnings for the half year are expected to be around $270 million, compared to $255.5 million for the same time in 2009. On Monday the company said it had reached an agreement with its parents company AXA SA, and National Australian Bank (ASX:NAB), to extend the date for shareholder and court approval for NAB’s proposal to purchase the Australian and New Zealand businesses of the company. AXA says the agreement allows for the payment of an interim dividend to shareholders of up to 9.25 cents per share for the period ending 30 June 2010. AXA Asia Pacific will be announcing results for the six months to 30 June on 4 August 2010. Shares in AXA Asia Pacific Holdings are up 0.19% at $5.28.
Turning now to market indices: The best performing index is the Materials sector, up 166 points to 11,737. Shares in Andean Resources are 6.86% higher at $3.74. Shares in Macarthur Coal and Sims Metal Management are also higher at noon.
The worst performing index is the Consumer Staples sector, down 96 points to 7,313. Shares in Woolworths dropped 1.95% to $26.16. Shares in Foster’s Group and Metcash are also lower at noon.
To New Zealand now and the NZSX50 is up 14 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock up 1.04% at $1.95 followed by; Fletcher Building, Fisher & Paykel Healthcare and Goodman Property Trust.
To gold and the dollar: Gold is trading at US$1,191.50 an ounce and the Aussie dollar is trading at 88.22 US cents.
