As Hurricane Sandy kept US markets closed for a second straight day a positive European lead has buoyed the Australian share market 0.5 per cent higher at noon. All sectors are trading higher pulled up by blue chip stocks, excluding National Australia Bank Limited
(ASX:NAB) who have pulled back after reporting a 22 per cent drop in its annual profit.
The S&P/ASX 200 index has gained 30 points and is sitting at 4,516. On the futures market the SPI is 25 points higher.
Economic news
Building approvals rose more than expected last month: The Australian Bureau of Statistics has reported building approvals increased 7.8 per cent to 13,388 in September from 12,422 units in August.
Company news Lynas Corporation Limited
(ASX:LYC) has confirmed its rare earth refinery is ready for production in Malaysia should a Malaysian high court reject an injunction on its license next week. However, the rare earths developer has warned demand for its main product could be impacted by a slowdown. In its quarterly report Lynas says a number of rare earths-consuming companies are deferring purchases of fresh materials due to an uncertain outlook on economic growth. Shares in Lynas Corporation have risen 2.45 per cent and are trading at $0.73.
Speculation is surrounding Arrium Limited’s
(ASX:ARI) $1 billion takeover bid after the mining group entered a trading halt this morning, with reports claiming the bid has now been increased. Arrium, formally OneSteel, plans to make an announcement regarding a renewed acquisition proposal before this Thursday. The developments come after the company rejected an initial takeover offer of 75 cents per share earlier this month from a consortium including Singapore’s Noble Group and Korea’s POSCO. Shares in Arrium last traded at $0.80 before entering into a trading halt.
Best and worst performers All sector are trading higher: The best performing sector is materials gaining 126 points to 10,211. Shares in Arafura Resources Limited
(ASX:ARU) have risen 5.26 per cent and trading at $0.20. Shares in Fortescue Metals Group Limited
(ASX:FMG) and BHP Billiton Limited
(ASX:BHP) are also stronger.
The sector with the smallest gains is consumer discretionary, lifting 8 points to 1,269. Shares in Harvey Norman Holdings Limited
(ASX:HVN) have fallen 1.18 per cent, trading at $1.89. Shares in Pacific Brands Limited
(ASX:PBG) are flat while shares in Myer Holdings Limited
(ASX:MYR) and higher.
Gold and the dollar
Gold is trading at $US1,711 an ounce.
The Australian dollar is buying $US1.036.
