Despite weak overseas leads, the Australian share market has risen 0.6 per cent at noon. Energy stocks have led local gains after commodity prices rose overnight. Shares in Biota Holdings Ltd (ASX:BTA) surged almost 60 per cent in early trade, after the drug development company announced it had secured $231 million in funding for the development of its anti-influenza drug in the US.
The S&P/ASX200 index has risen 24 point and is 4,862 at noon. On the futures market the SPI is 19 points higher.
Company news: Austar United Communications Ltd (ASX:AUN) has denied reports that it has secured a $1.9 billion deal with Foxtel, for Foxtel to buy Austar. In a statement to the Australian Securities Exchange, the regional pay TV operator says no agreement has been reached between its major shareholder US-based Liberty Global and Foxtel, including with respect to price. Austar says the speculation is uninformed and inaccurate and that the company will issue an update should a formal proposal eventuate. Shares in Austar United Communications are 3.42 per cent higher at noon and trading at $1.36.
Forestry company Gunns Ltd (ASX:GNS) has announced that it will suspend its woodchip operations at the Tasmanian Triabunna mill for eight weeks, due the impact of the Japanese earthquake and a strengthening Australian currency. As a result of these factors, Gunns says markets that the mill currently supplies woodchips to have experienced volatile demand. Gunns says it will now review the mills operations as it works to secure a sustainable future for the mill, consistent with the company’s plans to exit from native forest based operations in Tasmania. Shares in Gunns have fallen 3.23 per cent and are trading at $0.60.
Best and worst performers: The best performing sector is Energy, rising 212 points to 17,186. Shares in Aquila Resources have lifted 3.1 per cent and trading at $9.63. Shares in Woodside Petroleum and Oil Search have also firmed at midday. The worst performing sector is Telco Services, easing 6 point to 958 points. Shares in Telstra have fallen 0.71 per cent to $2.80. While, shares in Macquarie Telecom and Freshtel Holdings are steady at noon.
New Zealand: The NZSX50 has added 4 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 1.07 per cent at $9.24 followed by ANZ, Telecom Corporation of New Zealand and Westpac,.
Gold and the dollar: Gold is trading at $US1436 an ounce and the Aussie dollar is buying $US1.0322 cents.
