The Australian share market was trading higher at midday following an upward drift from Wall Street overnight. Commodities were also higher, after US oil prices hit a 26-month high at the start of the week. All the major indices, banks and miners were higher.
The S&P/ASX200 index is up 22 points and is 4,798 at noon. On the futures market the SPI is up 24 points.
Company news: Japanese insurer Dai-ichi’s friendly takeover offer for Tower Australia Ltd’s (ASX:TAL) has turned out to be lucrative for chief executive Jim Minto as he is on track to receive a $34 million windfall from the deal. The payment forms as part of the $70 million Dai-ichi has promised to buyout stock options held by six of Tower’s senior executives. Chief financial officer John de Zwart stands to win $10.8 million from the options buyout. Yesterday Tower’s independent directors backed the $4-a-share offer which values the company at $1.76 billion. Shares in Tower Australia are steady at $3.87. Austal Ltd’s (ASX:ASB) US-arm has been awarded a contract by the US Navy for the purchase of 10 Austal combat vessels valued at $432 million. The agreement includes the option for nine additional vessels over the next five years. Construction of the first Austal vessel is due to commence in early 2012 and is scheduled for delivery in 2015. As part of the agreement, the company is also carrying out preparation work which includes a $140 million facility expansion and workforce development that will take around 12 months to complete. Shares in Austal are 0.86 per cent higher at $3.51.
Turning to market indices, and all the indices were higher at midday and the best performing sector is Materials with the index advancing 106 to 14,220. Shares in Lynas Corporation have risen 8.91 per cent to $1.955. Shares in and PanAust and OneSteel have also gained at noon.The sector with the smallest gains at midday is Telco Services, up 4 points to 957. Shares in Amcom have fallen 3.03 per cent and are $0.32. Shares in Reverse Corporation were down and Engin was flat at midday.
New Zealand: The NZSX50 has dropped 2 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 0.46 per cent at $2.17; followed by Fletcher Building Group, ANZ and Westpac.
To gold and the dollar: Gold is trading at $US1,413 an ounce and the Aussie dollar is buying $US1.0192.
