Buoyed by positive leads, the Australian share market has climbed over 1 per cent at noon. Higher commodity prices have strengthened the miners and energy stocks, with the banks attracting bargain hunters following days of heavy selling in the sector.
The S&P/ASX200 index has added 48 points and is 4,633 at noon. On the futures market the SPI is 48 stronger.
Economic news: The Reserve Bank of Australia’s deputy governor Ric Battellino has today issued a warning that interest rates are likely to rise globally and locally to combat inflation. Mr Battellino also rejected any notion of a commodity price bubble, rather, that they are being driven by fundamental demand/supply factors. In other economic news, the Australian Bureau of Statistics has reported that private new capital expenditure increased 3.4 per cent in the March quarter, more than had been expected.
Company news: Shares in Austar United Communications Ltd (ASX:AUN) have jumped after the region pay-TV company confirmed Foxtel has launched a formal bid worth almost $2 billion for Liberty Global’s 54 per cent stake in Austar. While the proposal does require shareholder and regulatory approval, Foxtel’s offer of $1.52 per Austar share has the support of both Austar’s board and Liberty Global. However, Austar has cautioned that in light of the conditional nature of the proposal, it cannot assure the deal will proceed. Shares in Austar United Communications have advanced 8.3 per cent and are trading at $1.37.
Reports have again surfaced that Origin Energy Ltd (ASX:ORG) is looking to raise $1 billion in hybrid securities to fund it $35 billion Australia Pacific liquefied natural gas project in Queensland. The Australian Financial Review says Origin is expected to hold a roadshow in the UK this week, which comes as the company is gearing up to make a final investment decision on the LNG project within months. According to the AFR, the hybrid securities will not put Origin BBB+ credit rating at risk. Shares in Origin Energy have risen 1.65 per cent at noon and are trading at $16.06.
Best and worst performers, and most are in positive territory, with Energy up the top , rising 314 points at 16,066. Shares in Roc Oil Company have lifted 7.04 per cent and trading at $0.38. Shares in Aurora Oil & Gas and Paladin are stronger at noon. The worst performing sector is Utilities easing 3 points to 4,278. Shares in SP AusNet have slipped 2.67 per cent and trading at $0.91. Shares in Envestra and AGL Energy have also fallen at noon.
To New Zealand: The NZSX50 is 7 point weaker. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 1.81 per cent at $2.44 followed by ANZ, Fletcher Building and Telstra.
Gold and the dollar: Gold is trading at $US1,528 an ounce and the Australian dollar is buying $US1.0593 cents.
