The Australian share market is trading higher at midday with the major miners leading the session after receiving strong leads from offshore trading overnight. The lift in stocks has been driven by China’s decision to hold interest rates despite inflationary pressures. Instead of raising rates, China’s central bank has decided to extend an increase in reserve requirements for major banks.
The S&P/ASX200 index has risen 3 points to 4,760. On the futures market the SPI is up 4 points.
Blackthorn Resources Ltd (ASX:BTR) has admitted to an embarrassing mistake after saying that drill results from its Mumbwa gold joint venture were incorrect and actually contained almost no gold. Blackthorn had originally told the stock exchange in October that testing at Mumbwa showed “significant gold presence in drilling cores,” however, the results were incorrect and overstated. Blackthorn was informed of the error by BHP Billiton Ltd (ASX:BHP) who commissioned a reanalysis of the drill hole. BHP owns 40 per cent of Mumbwa with the remaining 60 per cent held by Blackthorn. Shares in Blackthorn Resources are up 7.34 per cent at $0.585.
Country Road Ltd (ASX:CTY) has appointed its third chief executive this year. The upmarket clothing retailer is handing the reigns to General Pants managing director Howard Goldberg who will be responsible for steering the company through stormy waters next year as the firm faces tough retail conditions and a pending court action. Mr Goldberg replaces former CEO John Cheston who spent a mere 10 weeks as Country’s Road’s chief. Country Road last traded at $3.60.
Market indices. The best performing sector is Materials with the index rising 110 points to 14,077. Shares in PanAust have advanced 8.32 per cent to $0.807. Shares in BlueScope Steel and Alumina Ltd are also stronger. The worst performing sector at midday is Utilities, the index down 96 points to 4,358. Shares in Viridis Clean Energy have fallen 7.69 per cent to just over one cent. Shares in AGL Energy and Solco Ltd have also eased at midday.
New Zealand: The NZSX50 is up 3 points. Telecom Corporation of New Zealand is at the top of the list with stock up 0.48 per cent at $2.11; followed ANZ, Fletcher Building Group and Westpac.
Gold and the dollar: Gold is trading at $US1,397 an ounce and the Aussie dollar is buying 99.49 US cents.
