Midday: Aus shares 0.6% up at noon

Market Reports

The Australian share market returned to positive territory at open after gains on Wall Street overnight and is 0.6 per cent up at noon with all major sectors trading higher, led by gains in Utilities stocks. 
 
The S&P/ASX 200 index is 31 points up at 5,035. On the futures market the SPI is 42 points higher. 
 
Economic news

The Australian Bureau of Statistics says construction work done in the December quarter fell 0.1 per cent, coming in well below the median forecast of a 1.5 per cent rise. According to the ABS, home and non-residential building work rose 1.8 per cent in the quarter, while engineering work fell 1.3 per cent. Over the year to the December quarter, the volume of construction work was up 11.9 per cent. 
 
Company news
 
Building products maker James Hardie Industries (ASX:JHX) has reduced its full year earnings forecast despite swinging to a $31 million third quarter net operating profit. CEO Louis Gries says despite the US housing market gaining momentum, earnings growth has been constrained by lower sale prices and high costs. Mr Gries said Australian conditions remain subdued and the group does not expect a substantial improvement any time soon. Shares in James Hardie are trading up 1.71 per cent at $9.51. 
 
UGL Limited (ASX:UGL) says cost overruns on several infrastructure projects, as well as restructuring costs contributed to a 53 per cent first half profit slide. CEO Richard Leupen says the engineering company is returning to normal trading in the second half after reporting a $26 million profit in the six months to December. Shares in UGL are trading down 2.66 per cent at $10.61. 
  
Best and worst performers

All major sectors are higher, The best performing sector is Utilities, gaining 135 points to 5,531. Shares in AGL Energy Limited (ASX:AGK) have risen 4.41 per cent and trading at $15.86. Shares in Spark Infrastructure Group (ASX:SKI) and DUET Group (ASX:DUE) are also stronger at midday. 
 
The sector with the least gains is Telco services gaining 8 points to 1,580. Shares in TPG Telecom Limited (ASX:TPM) have fallen 0.57 per cent, trading at $2.60. Shares in Telecom Corp of New Zealand (ASX:TEL) and Telstra Corporation Limited (ASX:TLS) are slightly higher at midday. 
 
Gold and the dollar

Gold is trading at $US1,614 an ounce and the Australian dollar is buying $US1.023.

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