Despite a negative lead from Wall St, Aussie stocks are higher at midday with some positive economic reports out of the US easing fears of a double-dip recession in the States. After profit-taking yesterday at the end of September, investors bought back into the major banks and miners today.
The S&P/ASX200 index is up 21 points at 4,604 and on the futures market, the SPI200 is up 22.
In economic news: The Australian Industry Group/PricewaterhouseCoopers Performance of Manufacturing Index fell 4.4 points to a read of 47.3 in September. The result falling below the 50 mark indicating contraction in the sector.
To company news: Aussie miner Coalspur Mines Ltd (ASX:CPL) is to raise up to $80 million through share placements to strategic and institutional investors. The placements include the issue of 55 million shares at $0.80 each to raise $44 million to strategic and institutional investors. A further $36 million will also be raised from a private placement of convertible notes which, subject to shareholder approval, will convert into 45 million shares at $0.80 each. Proceeds will be used to fund the acquisition of coal leases and further accelerate development of Coalspur’s Vista Coal Project. Shares in Coalspur Mines are 4.86% higher at $0.97.
One of Aevum Ltd's (ASX:AVE) key shareholders has accepted Stockland (ASX:SGP) $270 million takeover bid for Aevum. Fisher Funds Management which did hold an 8 per cent stake in Aevum has sold its shares in the company. Stockland now holds a 60.52 per cent interest in Aevum. Shares in Aevum are steady at $1.77.
Turning now to market indices: Majority of sectors are in positive territory at midday, the best performing is Materials with the index up 116 points to 12,545. Shares in Arafura Resources are up 2.65% to $1.16. Shares in Aditya Birla and Independence Group and are also higher.
One of the only sectors in the red at noon is Utilities, with the index down 14 points to 4,460. Shares in APA Group are down 1.23% to $4. Shares in Spark Infrastructure Group and Duet Group are also lower at midday.
To New Zealand now, the NZSX50 is up 32 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock up 1.49% at $2.05 followed by; Fletcher Building, Westpac, and ANZ.
To gold and the dollar: Gold is trading at $1308 US an ounce and the Aussie dollar is trading at 96.95 US cents.
