Daily Finance Update – Midday: Aus shares slightly higher – andre di cioccio

October 27, 2010 12:48 PM

Aussie shares are slightly higher at noon, following on from Wall St itching out modest gains overnight. The banking sector is higher on news the National Australia Bank has improved its full year net profit by 63 per cent, while the Telco’s are also aiding the gains.

The S&P/ASX200 index is 3 points higher at 4,691 and on the futures market, the SPI200 is up 6.

In economic news: The Australian Bureau of Statistics consumer price index rose 0.7 per cent in the September quarter, compared to the rise of 0.6 per cent in the previous quarter. The measure of inflation delivered a read lower than the 0.8 per cent rise expected, reducing the possibility that the Reserve Bank will lift interest rates next week.

To company news: Insurance Australia Group Ltd (ASX:IAG) has confirmed it is on track to reach its full year guidance of an insurance margin of 10.5 to 12.5 per cent, and underlying gross written premium growth of between 3-5 per cent. Managing director Mike Wilkins says early fiscal 2011 delivered strong performance, achieved despite the challenges of responding to a number of significant natural perils. These perils included storms in South East Australia, the earthquake that struck New Zealand as well as a severe snowstorm in New Zealand’s South Island. IAG advises the claim cost for these events will be covered by reinsurance arrangements. Shares in Insurance Australia Group are down 0.52% at $3.82.

Shares in Petsec Energy Ltd (ASX:PSA) have climbed over 20 per cent today, following an announcement the oil and gas producer has made a discovery at its partly owned prospect in the Gulf of Mexico. Petsec says a sizable gas and condensate discovery was made at the Marathon Prospect on the Louisiana coastline. Production is expected to cost Petsec US$1.2 million and to start before the end of the year. Chairman Terry Fern says Petsec is delighted that its strategy to drill for much larger targets in the deeper geologic section has borne fruit in its second well. Shares in Petsec Energy have surged 21.21% to $0.20.

Turning now to market indices: The best performing sector is Telco Services with the index up 12 points to 930. Shares in Amcom Telecommunications are up 4.55% to $0.345. Shares in Telstra and Singtel are also higher at noon. The worst performing sector at midday is Utilities, with the index down 54 points to 4,559. Shares in AGL Energy have dropped 2.7% to $16.22 Shares in Geodynamics and Envestra are also lower at noon.

To New Zealand now, the NZSX50 is up 7 points. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand with stock up 0.48% at $2.08 followed by ANZ, Fletcher Building and Guinness Peat Group.

To gold and the dollar: Gold is trading at $1343 US an ounce and the Aussie dollar is trading at 97.9 US cents.

Midday: Aus shares higher – andre di cioccio

The Australian share market is up one per cent, defying a mixed lead from Wall St and a flat start. Locally Energy stocks are leading the gains with all sectors trading in the black.

The S&P/ASX200 index is up 47 points at 4,695 and on the futures market, the SPI200 is up 65.

In economic news: Data released by the ABS today shows that the nation’s producer price index increased 1.3 per cent in the September quarter for an annual rise of 2.2 per cent, up from 0.3 per cent the quarter before.

To company news: Tabcorb Holdings Ltd’s (ASX:TAH) CEO and managing director Elmer Funke Kupper says the company’s revenue lifted 4.1 per cent in the first quarter of fiscal 2011 compared to the same time last year. Speaking at the company’s annual general meeting Mr Funke Kupper says it has been a positive start with Tabcorb’s casino division revenue up 7.1 per cent and all three casino’s recording positive growth. Tabcorb advises that the Soccer World Cup aided growth in its first quarter results. Shares in Tabcorp Holdings are 0.13% higher at $7.46.

Oil and gas producer Santos Ltd (ASX:STO) has inked a deal to supply gas to its joint venture project Gladstone Liquefied Natural Gas plant in Queensland. Following news that Gladstone LNG had been awarded environmental approval from the Federal Government, Santos says it will supply the project with 750 petajoules of gas over 15 years from 2014 largely from its Cooper Basin reserves in South Australia. CEO David Knox says the deal offers significant value to the Cooper Basin through opening up the ability for exports. Shares in Santos are 2.72% stronger at $12.84.

Turning now to market indices: As mentioned, all sectors are in the black at midday with the best performing sector Energy, the index up 246 points to 15,498. Shares in Beach Energy are up 9.02% to $0.665 cents. Shares in Santos and Oil Search are also higher. The sector with the least gains at midday is Consumer Staples, with the index up 54 points to 8,297. Shares in Tassal Group have dropped 0.71% to $1.395 cents. Shares in Premier Investments and GrainCorp are also lower at noon.

To New Zealand now, the NZSX50 is up 25 points. Taking a look at the top 4 stocks by turnover: topping the list is Telecom of New Zealand with stock up 2.96% at $2.09, followed by Fletcher Building, ANZ and Sky City Entertainment Group.

To gold and the dollar: Gold is trading at $1337 US an ounce and the Aussie dollar is trading at 98.84 US cents.

Australian Share Report – posted by andre di cioccio

Aussie shares are up 0.8 per cent at noon, following on from a positive lead from Wall St amid encouraging US economic data. Locally banks are leading the gains.

The S&P/ASX200 index is up 36 points at 4,615 and on the futures market, the SPI200 is up 48.

To company news: Airport operator Australian Infrastructure Fund Ltd (ASX:AIX) has reported strong monthly passenger growth for August, with an increase of 7.6 per cent in passengers for the month, compared to the same time last year. Australian airports comprise of over 80 per cent of the infrastructure fund’s portfolio by value, and recorded domestic passenger growth of 8.9 per cent and international passenger growth of 12.6 per cent. Compared with the long-term annual average passenger growth rate of 5.6 per cent per cent between 1986 and 2010, the fund says its latest growth rates for August compare favourably. Shares in Australian Infrastructure Fund are 0.79% down at $1.885.

Webjet Ltd (ASX:WEB) says its July to September total transaction value was up to around $149 million, compared to $120 million last year. The online travel marketer says the result represents an increase of 24 per cent, and as average booking values this year are similar to last year, virtually all of the result is in unit numbers and shows Webjet’s increasing market footprint. Managing director David Clarke says the latest quarterly increase compounds the growth achieved in the same quarter last year when Webjet defied the general industry downturn. Shares in Webjet are 2.08% up at $2.45.

Market indices: Most sectors are in the black at noon. The best performing sector is Financials Excluding Real Estate Investment Trusts, with the index up 57 points to 5,117. Shares in AMP are up 2.34% to $5.24. Shares in National Australia Bank and Macquarie Group and are also higher. The worst performing sector at midday is Telco Services, with the index down 2 points to 909. Shares in Amcom Telecommunications have dropped 1.43% to $0.345. Shares in Telstra and iiNet are also lower at noon.

The NZSX50 is up 14 points. Taking a look at the top 4 stocks by turnover: AMP is at the top of the list with stock up 0.75% at $6.75 followed by; Telecom of New Zealand, Fletcher Building and ANZ.

Gold and the dollar: Gold is trading at $1317 US an ounce and the Aussie dollar is trading at 96.99 US cents.