Following mixed overseas leads the Australian share market has risen 0.2 per cent at noon. The miners have extended yesterday’s gains, amid takeover activity and speculation in the sector.
The S&P/ASX200 index has firmed 11 points and is 4,898 at noon. On the futures market the SPI is 9 points higher.
Economic news: The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index has posted its fifth straight month of contraction for activity in the services sector, pulled down by falls in the retail and transport sectors. The index fell 2.2 points to 46.5 in March, under the 50-point level that separates expansion from contraction.
Company news: QBE Insurance Group Ltd (ASX:QBE) says its pre-tax insurance profit could rise by at least 30 per cent in 2011 and that it will maintain its dividend. Speaking at the company’s annual general meeting, QBE chairman Belinda Hamilton said QBE’s targeted growth in premium income from acquisitions should see insurance profit grow. QBE has made 75 acquisitions over the past decade, establishing a presence in almost 50 countries. The insurance giant’s key measure of profitability, its insurance margin, remains at a target range of between 15 to 18 per cent for the full year. Shares in QBE Insurance Group have risen 3.44 per cent at are currently trading at $18.63.
AMP Capital, a unit of Australian fund manager AMP Ltd (ASX:AMP), has raised almost $331 million for a new wholesale infrastructure debt fund and secured commitments from 12 institutional investors. The institutional investors include the world’s biggest life insurance company China Life Insurance Co, together with funds managed by AMP Capital. AMP Capital's head of infrastructure debt, Andrew Jones, says the portfolio will consist of investments in the subordinated debt of 10 to 15 companies headquartered in Organisation for Economic Co-operation and Development countries. Shares in AMP have firmed 0.36 per cent and are trading at $5.62.
Best and worst performers: The best performing sector is Materials, lifting 130 points to 14,544. Shares in Lynas Corporation have gained 7.08 per cent and trading at $2.57. Shares in Murchison Metals and Extract Resources have also improved at midday. The worst performing sector is Energy falling 126 points to 17,160. Shares in Linc Energy have dropped 2.03 per cent to $2.89. Shares in Origin Energy and Santos are also lower at noon.
New Zealand: The NZSX50 has added 11 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock up 0.64 per cent at $9.39 followed by Telecom Corporation of New Zealand, Westpac and ANZ.
Gold and the dollar: Gold is trading at $US1437 an ounce and the Aussie dollar is buying $US1.033 cents.
