The Australian share market has rebounded from a nine month low yesterday to climb more than 1 per cent at noon. Energy and resource stocks are fuelling gains, with Australia’s largest brewer Foster’s Group Ltd (ASX:FGL) soaring more than 12 per cent after rejecting a $9.5 billion takeover bid from SABMiller.
The S&P/ASX200 index has risen 46 points to 4,498. On the futures market the SPI is 33 higher.
Company news
Rio Tinto Ltd’s (ASX:RIO) purchase of Riversdale Mining Ltd (ASX:RIV) could boost its annual output by as much as 25 million metric tons of Mozambique coal. Riversdale has told Reuters that it expects to export first coking coal from its Benga project in early 2012, scheduled to reach around 10 million tonnes of coal by 2013. Last week Rio gained full ownership of Riversdale after Tata Steel agreed to sell its 26.3 per cent stake. Shares in Rio Tinto have risen 1.33 per cent at noon and are trading at $78.33.
Linc Energy Ltd’s (ASX:LNC) purchase of the controlling interest in an oil field located in Alaska’s National Petroleum Reserve has been endorsed by the Alaskan government. Last week Linc announced that it had bought the stake for $50 million US dollars. Linc says the Alaskan Government has now confirmed its plan to develop a road and pipeline corridor to facilitate development in the area. Shares in Linc Energy are 1.04 per cent higher at noon, trading and $2.92.
Sectors
The best performing sector is Consumer Staples, adding 141 points to 7,779. Shares in Foster’s Group have advanced 12.58 per cent and trading at $5.10. Shares in Metcash and Coca-Cola Amatil are also higher at noon. The worst performing sector is Utilities easing 9 points to 4,310. Shares in Energy World Corporation have dropped 2.86 per cent and trading at $0.51. Shares in Duet Group and SP AusNet are also lower at noon.
New Zealand
The NZSX50 is 4 point lower. 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 0.42 per cent at $2.39, followed by ANZ, Contact Energy and Fletcher Building.
Gold and the dollar
Gold is trading at $US1,541 an ounce and the Australian dollar is buying $US1.0577 cents.
