The Australian share market was trading higher at midday after a positive lead from Wall Street. US stock markets surged overnight on gains in the materials and technology sectors. All the major miners were higher with gold producer Newcrest leading the pack, despite cutting production guidance. The Big Four banks were stronger as well with Commonwealth Bank posting the most gains after announcing it had a 2 per cent rise in funds under administration in the December quarter.
The S&P/ASX200 index gained 29 points and is 4,815 at noon. On the futures market the SPI is up 25 points.
Company news: Australia’s second-largest airline Virgin Blue Holdings Ltd (ASX:VBA) says it expects revenue to be impacted by up to $40 million and profit of fall by up to 63 per cent for the six months ended 31 December. Virgin says a slowdown in consumer spending coupled with the flooding in Australia’s eastern seaboard would see half-year net profit fall in the range of $23 million to $26 million. The company reported a $62.5 million net profit in the previous corresponding period. Shares in Virgin Blue are 2.35 per cent lower at $0.415.
The Australian has reported that Media group Ten Network Holdings Ltd (ASX:TEN) has increased its stake in Oasis Active by participating in a capital raising carried out by the dating website. The capital raising was supported by existing shareholders and Ten, which owns just over 40 per cent in the website, as well as former Engin and Solution 6 chief executive Neil Gamble. The move is another sign of mainstream media companies growing their exposure to digital transactional businesses. Last week Yahoo7, a joint venture between Seven Media Group and Yahoo, bought website Spreets. Last year, Nine Entertainment purchased Spreets rival Cudo. Shares in Ten Network are 0.35 per cent higher at $1.435.
Market indices: The best performing sector is Materials with the index rising 108 points to 13,974. Shares in Sundance Resources have risen 5.43 per cent to $0.485. Shares in Lynas Corporation and Fortescue Metals have also lifted at noon. All the sectors were in the black but the sector with the smallest gains at midday is Utilities, up 14 points to 4,437. Shares in Solco have eased 3.85 per cent and are $0.125. Shares in Geodynamics and Australian Power and Gas Company have also dropped at midday.
New Zealand: The NZSX50 is up 9 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 0.87 per cent lower at $2.29; followed by ANZ, Westpac and Fletcher Building Group.
Gold and the dollar: Gold is trading at $US1,333 US an ounce and the Aussie dollar is buying 99.38 US cents.
