The Australian share market has leapt 1.5 per cent at noon, buoyed by hopes for the eurozone’s debt crisis after Italy’s Prime Minister, Silvio Berlusconi, agreed to resign. All sectors are higher, led by the miners and energy stocks, ahead of the release of Chinese economic data.
The S&P/ASX200 index has leapt up 64 points and is 4,358. On the futures market the SPI is 79 points stronger.
Economic news
The Reserve Bank of Australia’s November rate cut has been attributed for a rise in confidence, hitting a six month high. Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute have reported consumer sentiment jumped 6.3 per cent to 103.4 in November. The index was 97.2 in October.
The Australian Bureau of Statistics has reported that home loans approved rose more than expected in September. Approved home loans were up 2.2 per cent to 51,821 in the month. Total housing finance by value was up 1 per cent to $21.104 billion.
Company news
Shares in Maryborough Sugar Factory Limited (ASX:MSF) jumped 30 per cent this morning after confirming it has entered agreements with its 22 per cent shareholder, Thailand's Mitr Phol Sugar Corp, to buy all the shares that it does not already own in the sugar producer. Mitr Phol has offered Maryborough $4.45 per share, valuing the company at around $320 million. Subject to Mitr Phol’s completion of due diligence Mitr Phol is expected to make an off-market takeover offer which will then need to be cleared by the Australian Foreign Investment Review Board. Shares in Maryborough Sugar Factory have jumped 29.41 per cent to $4.40.
SP AusNet (ASX:SPN) has posted a 12 per cent drop in its first half net profit, impacted by a rise in income tax expense. In the same six month period the electricity provider’s revenue rose 5.7 per cent. SP AusNet has declared an interim dividend of $0.04 per share and confirmed it will maintain its annual dividend payout of $0.08 per share. Shares in SP AusNet are trading 1.53 per cent higher at $0.995.
Best and worst performers
Most sectors have risen: The before performing sector is Materials, advancing 277 points to 12,068. Shares in Aquarius Platinum have bounced 6.67 per cent and trading at $2.72. Shares in Orcia and Rio Tinto are also stronger.
The worst performing sector is Telco Services, dipping 5 points to 1,074. Shares in Amcom Telecommunications have slipped 0.59 per cent and trading at $0.84. Shares in Telstra and Telecom Corporation of New Zealand are also lower.
New Zealand
The NZSX50 is 8 points 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 rising 0.74 per cent to $2.71 followed by ANZ, Fletcher Building and Westpac.
Gold and the dollar
Gold is trading at $US1,792 an ounce.
The Australian dollar is buying $US1.0387.
