After positive leads the Australian share market is a little higher at noon. Gains have been supported by the gold miners, on the back of the surging price of gold. The Australian dollar continues to rally, nudging 105 US cents.
The S&P/ASX200 index has added 9 points and is 4,922 at noon. On the futures market the SPI is 1 point higher.
Economic news: The latest gauge of activity in Australia’s construction sector dropped to a two year low in March. The Australian Industry Group-Housing Industry Association's performance of construction index fell 5.2 points to 39.4 last month, the tenth straight month the read has been under 50, the level that separates contraction from expansion.
Company news: Rio Tinto Ltd (ASX:RIO) has declared its $3.9 billion takeover bid for Riversdale Mining Ltd (ASX:RIV) as unconditional, after gaining a 49.53 per cent interest in the in the coal miner. Riversdale has recommended its shareholders accept Rio’s offer and have appointed three Rio directors to its board. Yesterday the global miner lifted its offer from $16 to $16.50 per share as its stake in Riversdale rose over 47 per cent. The offer period has now been extended to 20 April, 2011. Shares in Rio Tinto have slipped 0.05 per cent and are trading at $86.06 at noon.
Analysts are tipping Leighton Holdings Ltd (ASX:LEI) is preparing to reveal its second profit downgrade this year. Earlier today the property developer placed its shares into a trading halt for up to two trading days pending an update on its guidance. In February Leighton forecast its full 2011 financial year net profit to drop by over 20 per cent, following a 25 per cent fall in its first half profit. Leighton said then that its result was impacted by cost overruns on its troubled Brisbane Airport Link project, wet weather conditions and a strong Australian dollar. Shares in Leighton Holdings last traded at $28.94 before entering into a trading halt.
Best and worst performers: The best performing sector is Health Care, firming 45 points to 9,074. Shares in Sigma Pharmaceuticals have advanced 6.06 per cent and trading at $0.35. Shares in Avexa and Ansell have also improved at midday. The worst performing sector is Industrials falling 11 points to 3,786. Shares in Macmahon Holdings have dropped 4.17 per cent to $0.575. Shares in Asciano Group and Virgin Blue are also lower at noon.
To New Zealand: The NZSX50 has eased 2 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 0.11 per cent at $9.31 followed by Telecom Corporation of New Zealand, ANZ and Westpac.
To gold and the dollar: Gold is trading at $US1457 an ounce and the Aussie dollar is buying $US1.0471 cents.
