Aussie shares are half a per cent higher at noon, following positive offshore leads. Locally resource companies have lifted the market higher on the back on stronger commodity prices. Energy companies have also rallied after oil prices rose overnight.
The S&P/ASX200 index has gained 32 points and is 4,768 at noon. On the futures market the SPI is 40 points higher.
Company news: Speculation is mounting that Rio Tinto (ASX:RIO) is moving in on coal miner Riversdale Mining Ltd (ASX:RIV). Shares in Riversdale entered into a trading halt today, pending an announcement on a possible control transaction. The Australian reports that Rio has already formalised a bid believed to be around $16 per share. Shares in Rio Tinto have firmed 0.81 per cent and are $86.14 at noon.
Shares in Energy Resources of Australia Ltd (ASX:ERA) have declined following a full year profit downgrade. The uranium miner now expects 2010 profit after tax of between $45 million to $55 million. In 2009 Energy Resources recorded a profit of $272.6 million, but the company says it has since been unfavourably impacted by lower production in 2010. Shares in Energy Resources of Australia have lost 8.96 per cent and are $11.99 at noon.
Market indices: Most are trading in the black. The best performing sector is Materials with the index rising 126 points to 14,061. Shares in Mt Gibson Iron have advanced 3.45 per cent to $2.10. Shares in and Sundance Resources and PanAust have also risen at noon. The worst performing sector at midday is Real Estate Investment Trusts, falling 2 points to 846. Shares in Australand Property Group have eased 0.66 per cent and are $2.99. Shares in Commonwealth Property Office Fund and CFS Retail Property Trust are also lower at midday.
To New Zealand: The NZSX50 is 13 point stronger. Taking a look at the top 4 stocks by turnover, Westpac is at the top of the list with stock 0.33 per cent down at $30.40; followed Telecom Corporation of New Zealand, Telstra and ANZ.
To gold and the dollar: Gold is trading at $US1,384 an ounce and the Aussie dollar is buying 99.3 US cents.
