Aussie shares are 0.4 per cent up at midday, after opening the session at a four month high this morning. Strength in China’s economy lifting the outlook in demand for metals, and helping to drive mining stocks higher.
The S&P/ASX200 index is up 20 points at 4,635 and on the futures market, the SPI200 is up 6.
In economic news: National Australia Bank reports that the August business confidence index has risen to 11, surging higher from a read of 2 the month before.
To company news: Rio Tinto Ltd (ASX:RIO) will invest US$803 million to complete the Argyle Diamond mine in Western Australia. The global miner advises that construction will ramp up early next year, with targeted production rates of nine million tonnes a year forecast within two years. Rio says the project was slowed in 2009 due to the GFC, but the diamond market continues to recover and Argyle is well positioned to capture new demand. Rio also announced today that it increased its stake in Canada’s Ivanhoe Mines to 34.9 per cent. Shares in Rio Tinto are 0.42% up at $75.62.
Northern Iron Ltd (ASX:NFE) has reported a half year profit turnaround, rising from a loss of $43.4 million in the first six months of 2009, to post a profit of $5 million in the first half of 2010. The miner posted $53.4 million in sales revenue, a $21.2 million foreign exchange gain and a $36.2 million working capital deficit. Shares in Northern Iron are steady at $1.79.
Turning now to market indices: The best performing sector at midday is the Materials, with the index up 133 points to 12,486. Shares in Sundance Resources are up 16% to $0.29. Shares in St Barbara and BlueScope Steel are also higher. The worst performing sector at midday is the Telco Services sector, with the index down 6 points to 959. Shares in Enerji dropped 5% to almost $0.02. Shares in Telstra and Telecom of New Zealand also lower at midday.
To New Zealand now and the NZSX50 is 14 points higher. Taking a look at the top 4 stocks by turnover: Topping the list is Fletcher Building with stock up 0.96% at $8.44 followed by; Telecom of New Zealand, Fisher and Paykel Healthcare and Sky City Entertainment Group.
To gold and the dollar: Gold is trading at $1250 US an ounce and the Aussie dollar is trading at 93.39 US cents.
