Despite weak leads Aussie stocks jumped at the open to recover some ground from the losses of this week. Stronger than expected GDP figures have pushed the local bourse almost 2 per cent higher at noon, with gains being led by the major banks and miners. Investors have also been encouraged by RBA governor, Glen Stevens, who signalled today rates look to remain on hold due to recent market volatility.
The S&P/ASX200 index has climbed 71 points and is 4,146 at noon. On the futures market the SPI is 74 points higher.
Economic news
The Australian economy grew more than expected in the June quarter. According to the Australia Bureau of Statistics gross domestic product grew 1.2 per cent in the second quarter of this year, up from a revised fall of 0.9 per cent in the first quarter. The latest figures exceeded expectations from economists who had forecast a rise of between 0.8 per cent and 1 per cent.
Company news
Takeover target ConnectEast Group (ASX:CEU) says its average daily revenue rose almost 12 per cent last month from August 2010. The toll road operator and owner generated more than $660,000 of average daily revenue in August, 5 per cent higher than the month before. In August the Foreign Investment Review Board approved Horizon Roads $2.2 billion bid to acquire the company. Shares in ConnectEast Group are steady at $0.535.
Responding to media speculation, Intrepid Mines Limited (ASX:IAU) has denied that it is in any merger discussions. The precious metals explorer and developer issued a statement to the ASX this morning, rejecting reports that it is in very early discussions with G Resources regarding a potential merger. Shares in Intrepid Mines have risen 4.26 per cent and are trading at $1.345.
Best and worst performers
All sectors are making gains: The best performing sector is Financials, Excluding Real Estate Investment Trusts, advancing 99 points to 4,411. Shares in National Australia Bank have risen 2.89 per cent and trading at $22.78. Shares in ANZ Banking Group and Westpac are also stronger. The sector with the smallest losses is Real Estate Investment Trusts, firming 0.63 points to 767. Shares in Investa Office Fund have eased 0.81 per cent and trading at $0.61. Shares in Commonwealth Property Office Fund and CFS Retail Property Trust are also lower.
New Zealand
The NZSX50 has risen 23 points. Taking a look at the top four stocks by turnover, Telecom Corporation at the top of the list with stock up 0.82 per cent at $2.46 followed by Westpac, Fletcher Building and Sky City Entertainment Group.
Gold and the dollar
Gold is trading at $US1,874 an ounce. The Australian dollar is buying $US1.0577 cents.
