The Australian share market has lifted 0.2 per cent after a positive lead from Wall St, despite global concerns over political unrest in Egypt. Locally the miners and retail banks are leading the gains. While, Queensland’s weather conditions continue to weigh on the market as fears mount over an approaching severe tropical cyclone in the state.
The S&P/ASX200 index has firmed 11 points and is 4,765 at noon. On the futures market the SPI up 12 points.
In economic news: National Australia Bank’s monthly business survey has today shown business conditions increased to 6 in December from 4 the month before. However, business confidence dropped to -3 from 6 the same time last year, both reads suffering from the impact of the floods in Queensland. Also out today, the Australian Industry Group/PriceWaterhouseCoopers performance of manufacturing index lifted 0.4 points to 46.7 in January, though still coming in under the 50 mark that separates contraction from expansion.
Company news: Logistics firm Toll Holdings Ltd (ASX:TOL) has bought Dubai-based sea-air services provider SAT Albatros as it expands into the Middle East and in the Asia to Europe trade lane. SAT combines Sea-Air logistics from Asia to Europe with weekly scheduled services and reported revenue in excess of $US40 million in 2010. While the value of the deal has not been disclosed, Toll says it expects the acquisition to be earnings per share positive in its first year. Shares in Toll Holdings have eased 0.68 per cent at noon and are trading at $5.84.
QR National (ASX:QRN) has been forced to temporarily suspend operations on two of its rail networks in Queensland ahead of expected wild weather conditions. A company spokesperson has told Reuters that the coal freight company has suspended its major Goonyella network and its smaller Newslands line as it prepared for Cyclone Yasi, due to his the state from Wednesday. Queensland Premier Anna Bligh today warned that Cyclone Yasi could be worse than Cyclone Larry that tore a $1.5 billion path of destruction in the state in 2006. Shares in QR National have dipped 0.36 per cent and are trading at $2.79.
Turning to market indices: The best performing sector is Materials with the index adding 111 points to 13,770. Shares in Incitec Pivot have risen 3.26 per cent to $4.44. Shares in PanAust and Periliya have also gained at noon. The worst performing sector at midday is Health Care, losing 79 points to 8,923. Shares in Sonic Healthcare have eased 2.26 per cent and are $11.67. Shares in Mesoblast and Ramsay Healthcare have also fallen at midday.
To New Zealand: The NZSX50 is up 6 points. Taking a look at the top 4 stocks by turnover, Fletcher Building is at the top of the list with stock is up 0.52% to $7.77; followed by Telecom Corporation of New Zealand, ANZ and Westpac.
To gold and the dollar: Gold is trading at $US1,336 an ounce and the Aussie dollar is buying $US99.73.
