Australian stocks are trading higher at midday led by financials. The market is attracting buyers after being beaten down yesterday to oversold levels.
The S&P/ASX200 index is up 30 points to 4,509 at noon. On the futures market the SPI is up 26 points.
Company news
Telstra Corporation Ltd (ASX:TLS) has issued a statement in response to media speculation that the deal with NBN Co has been finalised. Telstra specifically sought to clarify that speculation claiming the deal was done in The Australian this morning was incorrect. The telco advised that negotiations were in an advanced state, but the package of agreements have not yet been considered or agreed to by the Telstra Board. Shares in Telstra are up 0.33 per cent at noon and are trading at $3.05.
Santos Ltd (ASX:STO) and Magellan Petroleum are in dispute over a $15 million deposit that Magellan is demanding back after the sale of a stake in the gas field collapsed. Magellan was planning a $100 million, 40 per cent stake in the gas field north of Darwin, but was unable to satisfy conditions by the end of May deadline. Santos has to date said it will keep the $15 million. Shares in Santos are down 0.81 per cent at $13.48.
Sectors
The best performing sector is Financials Excluding Real Estate Investment Trusts gaining 52 points to 4,820. Shares in Commonwealth Bank of Australia gained 1.44 per cent and are trading at $49.97. Shares in Westpac Banking Corporation and Australia and New Zealand Banking Group are also higher at noon.
The worst performing sector is Utilities falling 19 points to 4,325. Shares in Spark Infrastructure Group dropped 3.04 per cent and are trading at $1.275. AGL Energy Ltd and DUET Group shares are also lower at noon.
New Zealand
The NZSX50 is down 4 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 down 0.83 per cent at $2.38 followed by Fletcher Building, ANZ and Westpac.
Gold and the dollar
Gold is trading at $US1,529 an ounce and the Aussie dollar is buying $US1.057 cents.
