Aussie shares are up 0.2 per cent at noon, after a positive lead from Wall St. Locally resource and energy stocks are leading the gains on higher metal, oil and gold prices.
The S&P/ASX200 index is up 16 points at 4,698 and on the futures market, the SPI200 is up 16.
In economic news: The Australian Bureau of Statistics reports housing finance commitments for owner-occupiers increased one per cent to 47,540 in August. The value of total housing finance dropped 1.3 per cent to $20.14 billion. The value of home loans for owner-occupied homes remained unchanged at $13.635 billion.
To company news: BlueScope Steel Ltd (ASX:BSL) says it is expecting improved market conditions over the medium to long term, despite short term concerns such as reduced steel demand and a strong Aussie dollar. The steelmaker reports continued lower demand in the US, while it anticipates a strong first-half performance from its Asian businesses. In the year to the 30 June BlueScope reported a profit of $126 million, rebounding from a loss of $192 million the year before. Shares in BlueScope Steel are steady at $2.24.
The proposed merger between Bendigo Mining Ltd (ASX:BDG) and BCD Resources NL (ASX:BCO) is in doubt, with Bendigo threatening to end it because of a potential loan default. In July both companies entered into a scheme implementation agreement to propose a merger of the companies with Bendigo agreeing to provide a pre-completion loan of up to $8 million. Bendigo has so far advanced $5 million under the loan agreement. However Bendigo says it received information from BCD on the 6 October, which caused it to issue a notice of potential default on the loan agreement to BCD. Bendigo has warned that if BCD does not remedy the default by 5pm this Wednesday it will terminate the deal. Shares in Bendigo Mining are 4.76% up at $0.22.
Turning now to market indices: Most sectors are in the black at noon. The best performing sector is Materials, with the index up 137 points to 13,166. Shares in Auzex Resources are up11.9% to $0.47. Shares in Cudeco are higher while shares in Fortescue Metals Group have also lifted on news of its debt refinancing. The worst performing sector at midday is Consumer Staples, with the index down 83 points to 8,238. Shares in Woolworths have dropped 1.78% to $29.17. Shares in Goodman Fielder and Coca Cola Amatil are also lower at noon.
To New Zealand, the NZSX50 is up 5 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is at the top of the list with stock steady at $2.05 followed by; ANZ, Westpac and AMP New Zealand Office Trust.
To gold and the dollar: Gold is trading at $1352 US an ounce and the Aussie dollar is trading at 98.71 US cents.
