The local share market is marginally higher at midday retreating from earlier highs. Encouraging economic data out of the US overnight easing concern for the chance of a double dip recession in the US. The S&P/ASX200 index is up 9 points at 4,542 and on the futures market, the SPI200 is up 3.
In local economic news: The Australian Industry Group/Commonwealth Bank of Australia performance of services index rose 0.9 points to a read of 47.5 in August. The result remains below the 50 mark separating expansion from contraction.
Sales of new motor vehicles jumped 12% in August compared to August last year, according to data released by The Australian Federal Chamber of Automotive Industries.
To company news: Qantas Airways Ltd (ASX:QAN) says global operating conditions have improved from historic lows, but that the aviation sector remains highly competitive both domestically and internationally. Chairman Leigh Clifford told shareholders in the company’s annual report, that to succeed the group’s two flying brands will be competing vigorously every day in their different market segments, the full service Qantas and the low fares Jetstar. Mr Clifford says the economic outlook and competitive situation will continue to be challenging and potentially volatile. With this in mind Qantas decided not to declare an interim or final dividend in fiscal 2010 to ensure the group could retain a high credit rating and meet expected high capital requirements. Shares in Qantas Airways 0.79% higher at $2.55.
Agricultural chemicals supplier Nufarm Ltd (ASX:NUF) could face a class action brought on by its own shareholders who allege the company has been misleading. The Australian Associated Press reports that investigations are underway into Nufarm’s actions since providing profit guidance in March. Nufarm then halved its earnings forecasts in July. Shares in Nufarm down 2.57% at $3.41.
Turning now to market indices: The best performing sector at midday is the Utilities sector, with the index up 54 points to 4,367. Shares in APA Group Ltd are up 3.46% to $3.89. Shares in Duet Group and AGL Energy are also higher.
The worst performing sector at midday is the Financials excluding Real Estate Investment Trusts sector, with the index down 20 points to 5,011. Shares in Westpac dropped 0.75% to $22.48. Shares in ANZ and Insurance Australia Group also lower at midday.
To New Zealand now and the NZSX50 is 19 points higher. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is top of the list with stock flat at $2.03 followed by; Fletcher Building, Sky Network Television and Kiwi Income Property Trust.
To gold and the dollar: Gold is trading at $1250 US an ounce and the Aussie dollar is trading at 91.13 US cents.