The Australian share market was higher at noon following gains among most major banks.
All Ordinaries index had added 26.2 points, or 0.56 per cent, at 4,677.3 points.
Analyst said the local market was performing strongly for the first day of the month. We had a weak lead from offshore but the market is performing strongly.The banks are a bit mixed but mostly up and stronger commodity prices have bolstered resources, gold stocks are faring well."
The TD-Melbourne Institute inflation gauge shows inflation rose by just 0.1% in February, after jumping 0.8% in January. The relatively slow result could influence the RBAs decision on whether to increase interest rates tomorrow, though analysts are predicting they will rise.
And manufacturing activity expanded in February thanks to a lift in new orders which flowed through to stronger production and input deliveries. The Australian Industry Group/PricewaterhouseCoopers performance of manufacturing index rose by 2.8 points to 53.8. Readings above 50 indicate a rise in activity.
Australias largest energy retailer AGL Energy Ltd (AGK) has announced it will build a $716 million wind farm in south-west Victoria, following changes to the governments renewable energy scheme. The Macarthur Wind Farm will be constructed under a joint venture between AGL and Meridian Energy Ltd, one of New Zealands largest energy companies. When constructed, the wind farm will generate 365MW of power. AGL says the final decision to commit to construction is subject to the government legislating the proposed changes to its renewable energy scheme. Shares in AGL Energy Ltd rose 1.04% to $14.52.
Rio Tinto Ltd (RIO) has agreed to acquire 15 million shares in Ivanhoe Mines Ltd for $259.34 million, increasing its stake to 22.4%. CEO of the companys copper division Andrew Harding says the investment underlines Rios confidence in the quality of the Oyu Tolgoi deposit and its priority in Rios project portfolio. Under the deal, Rio has the right to increase its stake in Ivanhoe Mines up to 44%. Production is expected to begin in 2013, with a five-year ramp up to full expected production of 450,000 tonnes of copper per year and 330,000 ounces of gold. Rio Tinto shares added 1.45% to $71.52.
Most sectors are performing well at midday, but the frontrunner is the Staples index, up 144 points at 7,740. One of the only sectors in the red at midday is the Telco Services index, down 2 points to 1,024. Shares in Reverse Corp fell 3.7% to $0.26.
Gold is trading at US$1,118.95 an ounce and the Aussie dollar is trading at 90.02 US cents.
