Aussie stocks are slightly higher at midday thanks to strong offshore leads and gains in the miners on takeover activity in the sector following news New Hope has entered the bidding race for Macarthur Coal.
The S&P/ASX200 index is 9 points higher at 4,947 and on the futures market, the SPI200’s up 21.
In company news: Civil construction and mine contracting company Macmahon Holdings Ltd (ASX:MCC) says it is likely to win a material government contract, and denies rumours of a takeover offer from Leighton Holdings Ltd (ASX:LEI). In response to an ASX enquiry, Macmahon says it has been informed that it is likely to be awarded a $90 million contract by a government department. Also responding to takeover speculation the company says it is unaware of any takeover activity by Leighton Holdings. Leighton holds an 18.56% stake in the company. Macmahon Holdings shares dropped 0.59% to $0.845. Aussie gold miner Newcrest Mining Ltd (ASX:NCM) says it’s board has approved the development of the Cadia East gold and copper deposit near Orange in central western News South Wales. Newcrest says the Cadia East orebody is one of the world’s largest gold deposits with a mineral resource of 2.3 billion tonnes, containing 33.2 million ounces of gold and 6.59 million tonnes of copper. Along with a current ore reserve of 18.7 million ounces of gold and 3.16 million tonnes of copper, the miner says it will underpin production for the Cadia Valley for at least the next 30 years. Commenting on the company’s bid for fellow gold miner Lihir Gold Ltd (ASX:LGL), CEO Ian Smith says while the proposed merger of Newcrest and Lihir has a great deal of logic and is compelling, it is not vital and the development of Cadia East demonstrates the strength of the company’s organic growth pipeline and the growth options available whether or not the Lihir proposal proceeds. Shares in Newcrest Mining fell 0.2% to $35.43.
Turning now to market indices: The best performing sector at midday is the Telco Services index, up 8 points at 1,058. Shares in Amcom Telecom added 3.13% to $0.33. Shares in Telstra and Singtel are also higher at noon.
One of the worst performing sectors is the Health Care index, down 23 points to 8,975. Shares in ResMed declined 2.37% to $6.59, while shares in Ramsay Health Care and Biota Holdings are also lower.
Looking to New Zealand and the NZSX50 is up 6 points. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand stock down 0.9% at $2.20 followed by; Michael Hill International, Mainfreight and Pyne Gould.
To gold and the dollar: Gold is trading at US$1,151.50 an ounce and the Aussie dollar is trading at 92.84 US cents.
