The Australian share market has gained one per cent at noon, on the back of strong offshore leads with commodities also rising overnight. Locally resources are leading the gains, with all sectors trading in positive territory. Insurers however are mixed, as investors are nervous about Queensland’s approaching Cyclone Yasi.
The S&P/ASX200 index has lifted 48 points and is 4,801 at noon. On the futures market the SPI up 53 points.
In economic news: Housing Industry Association/Jeld-Wen new home sales report has posted the second consecutive fall in new home sales. New home sales fell 0.6 per cent in December, down from a 0.2 per cent fall the month before. For the December 2010 quarter, HIA says that new home sales rose 3.6 per cent because of strong sales in October, but growth was pulled back by the November rate hike.
Company news: Northern Energy Corporation Ltd (ASX:NEC) has rejected New Hope Corporation Ltd's (ASX:NHC) sweetened takeover bid, claiming the $225 million offer undervalues the company. Chairman Chris Rawlings says the revised price of $1.75 per share continues to represent a substantial discount to the value of the company’s coal assets and earnings potential. The company has advised shareholders take no action, pointing out that the mid-point of an independent expert’s valuation range, from $2.70 to $3.99 per share, is 91 per cent above New Hope's offer. Shares in Northern Energy Corporation are up 1.16 per cent at $1.75.
PaperlinX Ltd (ASX:PPX) has announced changes to save around $15 million per year through streamlining its management and head office structure. The paper manufacturer says it will transfer its CEO to PaperlinX operational headquarters in the UK, and close its European headquarters in Amsterdam. PaperlinX says the changes bring its senior management closer to the company’s operations. Shares in PaperlinX have dipped 1.09 per cent and are trading at 0.455.
Market indices: The best performing sector is Materials with the index adding 282 points to 14,020. Shares in Murchison Metals have risen 12.93 per cent to $1.485. Shares in Mirabela Nickel and Reed Resources have also gained at noon. The sector with the smallest gains at midday is Telco Services, up 5 points to 963. Shares in Amcom Telecommunications have eased 1.56 per cent and are $0.315. Shares in Telecom Corporation of New Zealand and iiNet have also lost ground at midday.
To New Zealand: The NZSX50 is up 12 points. Taking a look at the top 4 stocks by turnover, Fletcher Building is at the top of the list with stock is up 2.44% to $7.97; followed by Telecom Corporation of New Zealand, Fisher and Paykel Healthcare and Rubicon.
To gold and the dollar: Gold is trading at $US1,339 an ounce and the Aussie dollar is buying $US1.0115.
