The local share market is stronger at midday led higher by gains in the banks and miners following a positive lead from the US overnight and a rally in commodity prices. Mining giant Rio Tinto getting a boost from a sharp rise in copper prices. The S&P/ASX200 index is up 82 points at 4,452 and on the futures market, the SPI200 is up 93.
In economic news: According to data released by the ABS today, business inventories fell 0.5 per cent in the second quarter. However company gross operating profits rose 18.9 per cent in the June quarter, up 27.5 per cent on the year.
To company news: AJ Lucas Group Ltd (ASX:AJL) has posted a net loss of $7.13 million for the year to June 30 down from a profit of $103.25 million last year. The company provides engineering and construction services to the property, coal and gas sectors. In view of the disappointing result, and following a year of uncertainty and project delays the company has replaced senior management in its building and construction division. Looking ahead, AJ Lucas says the company has commenced the new fiscal year on a positive note with a number of projects in the pipeline. Shares in AJ Lucas Group dropped 1.48% to $2.
NRW Holdings Ltd (ASX:NWH) has reported a drop in earnings for the year but is confident of growth in the year ahead. Profit for the 12 months to June 30 came to $35.129 million down 5.2 per cent from $37.068 million recorded the year before. Revenue rose almost 17 per cent to $609.74 million in fiscal 2010, from $509.6 million in fiscal 2009. The company says the outlook for NRW Holdings is optimistic, saying it sees demand for civil and mining services becoming robust in the second half of fiscal 2011 with expectations of high demand for services continuing through fiscal 2012 and beyond. NRW Holdings declared a final dividend of 3 cents a share. Shares in NRW Holdings gained 4.05% to $1.285.
Turning now to market indices: All sectors are in positive territory at midday, however the sector with the biggest gain at noon is the Financials excluding Real Estate Investment Trusts sector, with the index up 109 points to 4,935. Shares in Bank of QLD are up 4.32% to $10.14. Shares in Platinum Asset Management and Tower Australia also higher.
The sector with the smallest gain at midday is the Telco Services sector, with the index up 9 points to 959. Shares in Engin dropped 4.65% to $0.41. Shares in BigAir Group and Amcom Telecom also lower at midday.
To New Zealand now and the NZSX50 is 31 points higher. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand with stock up 2.5% at $2.05 followed by; Sky City Entertainment Group, Auckland International Airport, and Fletcher Building.
To gold and the dollar: Gold is trading at $1236 US an ounce and the Aussie dollar is trading at 90.21 US cents.
