The Australian share market is trading stronger at midday, lead by the miners as stronger base and precious metal prices lifted resource stocks. Gold miners also rallied after gold prices rose in overnight offshore trade, hitting its highest point since mid-November. Copper has also risen to a three-week high.
The S&P/ASX200 index is up 23 points to 4,712, while on the futures market the SPI is up 21 points.
Economics news: The Performance of Construction Index released by Australia Industry Group and the Housing Industry Association shows Australia’s construction sector has contracted for a sixth month in November, with apartment builders reporting the worst conditions in 16 months. The overall construction index fell by 1.8 points in November. Apartment building and house building both took a dive. The survey found firms complaining about difficult market conditions, intense competition and decreasing work from the government’s school building project. Residential builders cited the impact of higher interest rates and weak demand from first home buyers.
Telstra Corporation Ltd’s (ASX:TLS) wholesale division is set to compete with NBN Co and various other wholesalers in the voice and internet services resale market. Telstra Wholesale’s group managing director Paul Geason says the company can keep its wholesale customers after transferring them to fibre if it provides services that NBN can’t such as billing, data hosting, content distribution and television. Shares in Telstra are down 0.36 per cent at $2.79.
Newcrest Mining Ltd (ASX:NCM) says it expects to boost gold output to 3.75 million ounces in the 2014 fiscal year from 2.74 million ounces in 2010. Earlier this year, Newcrest acquired rival Lihir Gold, which mainly operated from Lihir Island in Papua New Guinea. Shares in Newcrest are up 1.22 per cent at $41.59.
Turning to market indices, and the best performing sector is Materials with the index up 127 points to 13,922. Shares in Synergy Metals have advanced 16.67 per cent to $0.007. Shares in Strategic Minerals and Copper Range are also higher. The worst performing sector at midday is Healthcare with the index down 58 points to 8,773. Shares in Cordlife are down 16.9 per cent to $0.295. Shares in Stirling Products and LBT Innovations have also dropped at midday.
To New Zealand: The NZSX50 is down 4 points. Taking a look at the top 4 stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 1.38 per cent at $2.15; followed by Fletcher Building Group, Sky Network and Contact Energy.
To gold and the dollar: Gold is trading at $US1,421 an ounce and the Aussie dollar is buying 98.84 US cents.
