Despite weak overseas leads, the Australian share market has firmed 1 per cent at noon as investors look for potential bargains following yesterday’s step falls. The mining sector is leading the gains, amid news that Japan’s nuclear power plant fire is now under control.
The S&P/ASX200 index has gained 52 points and is 4,580 at noon.
Company news: The impact of Japan’s earthquake and tsunami has hit Billabong International Ltd (ASX:BBG). The surfwear retailer has today warned that its 2011 financial year net profit is likely to drop by as much as six per cent as a result of the events in Japan. Billabongs says it has 44 stores in the country, which account for 60 per cent of revenue generated from Japan. 18 stores still remain closed. Last month Billabong forecast a flat full year result, however the latest guidance is expected to drop full year earnings to around $137 million, down from $146 million in fiscal 2010. Shares in Billabong International have fallen 2.96 per cent at noon and are trading at $7.54.
BHP Billiton Ltd (ASX:BHP) will be looking to the unfolding nuclear power plant developments in Japan, with the global miner gearing up to decide on expansion plans for its $30 billion Olympic Dam uranium, copper and gold mine in South Australia. Olympic Dam is believed to hold the world’s largest uranium deposit, and the global miner will no doubt take into account the outlook for uranium as it considers a final investment decision. BHP has announced that it will donate $1 million to the Red Cross to assist with the disaster relief effort in Japan. CEO Marius Kloppers says Japan is one of BHP's largest country markets and the company has several Japanese joint venture partners across its global operations. Shares in BHP have risen 2.56 per cent at midday and are trading at $44.07.
Best and worst performers: The best performing sector is Materials lifting 351 points to 13,325. Shares in Cazaley Resources have advanced 14.29 per cent and trading at $0.40. Shares in Sundance Resources and OM Holdings have also risen at midday. The worst performing sector is Health Care, dropping 93 points to 8,289. Shares in CSL have sagged 1.58 per cent to $33.66. Shares in Cochlear and Ramsay Health Care have also dipped at midday.
New Zealand: The NZSX50 has added 21 points. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock up 1.52 per cent and trading at just over $2.005 followed by Fletcher Building, Goodman Property Trust and Sky City Entertainment Group.
Gold and the dollar: Gold is trading at $US1399 an ounce. The Aussie dollar is buying 99.48 US cents.
