Following positive offshore leads the Australian share market has rallied 0.9 per cent at noon. Before the market opened the Greek government secured a confidence vote, paving the way for critical reforms and buoying local sentiment. Most sectors are in positive territory, with the major banks and miners leading gains.
The S&P/ASX200 index is 39 points stronger at 4,547 at noon. On the futures market the SPI is 22 higher.
Economic news
The Westpac and Melbourne Institute’s Leading Index has shown that the pace of economic activity three to nine months into the future is likely to be weak as the economy recovers from the impact of recent wet weather conditions. The index grew at an annualised rate of 2.7 per cent in April, coming in under the long term trend rate of 3.1 per cent.
Company news
Qantas Airways Ltd (ASX:QAN) says that is expects to deliver an underlying profit before tax of between $500 million to $550 million in the 2011 financial year. Australia’s largest airline has also announced that it has reached a commercial settlement with Rolls-Royce, in regards to an engine explosion last year, to be recognised in its full year result as $95 million. And, Qantas has also revealed that the disruption from the Chilean volcano is likely to have cost $21 million as of the beginning of this week. Shares in Qantas Airways last traded at $1.825 before entering into a trading halt.
Stockland (ASX:SGP) has announced a number of new transactions, including $457 million worth of property and land purchases and $208 million worth of assets sales. Managing Director Matthew Quinn says both transactions involve asset-swaps and the reinvestment of capital into projects that fit with the company's long-term strategy to focus on residential, retail and retirement living. Shares in Stockland have slipped 0.29 per cent and are trading at $3.49.
Sectors
The best performing sector is Materials, adding 172 points to 1,318. Shares in Lynas Corporation have gained 3.59 per cent and trading at $2.02. Shares in Fortescue Metals Group and BHP Billiton have also risen at noon. The worst performing sector is Real Estate Investment Trusts easing 3 points to 851. Shares in Dexus Property Group have dropped 1.1 per cent and trading at $0.895. Shares in Abacus Property Group and Mirvac Group are also lower at noon.
New Zealand
The NZSX50 is 18 point higher. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock steady at $2.415 followed by Westpac, Fletcher Building and ANZ.
Gold and the dollar
Gold is trading at $US1,547 an ounce and the Australian dollar is buying $US1.0581 cents.
