The Australian share market is 0.4 per cent higher at noon, after Wall St closed marginally stronger following the Federal Reserve’s decision to stimulate the US economy. Locally the miners are leading gains, with BHP up on news the Canadian government has blocked its US$40 billion bid for PotashCorp.
The S&P/ASX200 index is up 21 points at 4,743 and on the futures market, the SPI200 is up 24.
In economic news: The ABS has shown the balance of goods and services in September was a surplus of $1.76 billion, down from $2.446 billion the month before. Retail trade for September increased 0.3 per cent to $20.509 billion, while over the September quarter retail sales increased by 0.7 per cent to $60.156 billion. The Federal Chamber of Automotive Industries (FCAI) has revealed monthly car sales for October didn’t change much in the month, up 0.1 per cent.
To company news: Shares in Austal Ltd (ASX:ASB) soared today, prior to its trading halt, following news the US Navy is in talks with the ship manufacturer. Austal says the trading halt is necessary, pending the release of an announcement regarding the Littoral Combat Ship tender with the US Navy. The US Navy is believed to also be in talks with another party for the tender. Shares in Austal climbed 18.47% to be $2.95 before entering into a trading halt.
Leighton Holdings Ltd (ASX:LEI) says its disappointing first quarter result has been impacted by problems associated with the Brisbane Airport Link project. The confirmation came at the company's annual general meeting where chairman David Mortimer revealed Leighton’s profit had fallen $85 million in the first three months of the current financial year. Leighton’s unaudited reported profit after tax for the quarter is therefore $48 million compared to $131 million reported last year. Shares in Leighton Holdings have fallen 0.39% to be $32.97 at noon.
Turning now to market indices: The best performing sector is Materials, with the index up 171 points to 13,501. Shares in Atlas Iron are up 5.08% at $2.69. Shares in Alumina and BHP are also higher. The worst performing sector at midday is Financials Excluding Real Estate Investment Trusts, with the index down 22 points to 5,190. Shares in AXA Asia Pacific Holdings are down 1.64% at $5.41. Shares in ASX and Macquarie Group are also lower at midday.
To New Zealand now, the NZSX50 is 4 points lower. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is at the top of the list with stock up 1.46% at $2.09 followed by; Fisher and Paykel Healthcare, Westpac and Sky City Entertainment Group.
To gold and the dollar: Gold is trading at $1348 US an ounce and the Aussie dollar is trading at just over one US dollar.
