Midday: Aus shares are higher

Market Reports

The Australian share market is up at midday, by .2%, fighting off a negative lead from Wall Street with material stocks leading the gains.

The S&P/ASX200 index is up 12 points at 4,578 and on the futures market, the SPI200 is up 23 points.

In economic news: The Australian Bureau of Statistics has reported that housing finance commitments for owner-occupied housing dropped 3.9% in June, seasonally adjusted, to 46,420. To company news: Rio Tinto Ltd (ASX:RIO) and Iron Ore Holdings Ltd (ASX:IOH) have terminated an agreement, for Iron Ore Holdings to supply ore from its Phil’s Creek mine. Iron Ore Holdings confirmed that both companies have failed to agree on the terms of access of the Yandicoogina site. The emerging junior iron ore producer says it will continue discussions with Rio so a new agreement can be reached, and hopes to update the market in September. Shares in Rio Tinto are 0.56% up at $73.61.

NGM Resources Ltd (ASX:NGM) has advised that Deutsche Securities Australia Ltd has acquired 10.7% of the issued capital of NGM Resources. Deutsche Bank commenced acquiring shares in NGM last month, one day after Paladin Energy Ltd’s (ASX:PDN) announcement that it intends to make an off-market scrip takeover offer for all of the NGM shares that it does not already own. NGM Resources advises that the 10.7% acquisition of shares from Deutsche Bank has resulted in a technical breach of one of the conditions of the proposed Paladin offer, and is awaiting advice from Paladin as to whether it intends to waive this condition to allow its takeover offer to proceed. Shares in Paladin Energy are 1.25% up at $4.05

Turning now to market indices: The best performing index is the Materials sector, up 76 points to 12,421. Shares in Extract Resources are 2.08% higher at $6.86. Shares in BHP Billiton and Alumina are also higher at noon. The worst performing index is the Utilities sector, down 14 points at 4,234. Shares in Spark Infrastructure dropped 0.85% to $1.17. Shares in Hastings Diversified Utilities Fund and AGL Energy are also lower at midday.

To New Zealand now and the NZSX50 is up 3 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock up 1.49% to $2.05 followed by; Telstra, Fisher and Paykel Appliances and Fletcher Building.

To gold and the dollar: Gold is trading at US$1204 an ounce and the Aussie dollar is trading at 91.8 US cents.

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