daytrades april 6 afternoon, page-7

Thank HLL

Australian stocks were almost one per cent higher at noon led by the major miners as investors await the central bank's cash rate decision.

All Ordinaries was up 47 points, or 0.96 per cent, at 4,973.

Analyst said "The market is taking some notice of today's interest rate decision. If we get a rise, the market has probably factored that in."

ANZs job advertisements survey showed that total job ads rose 1.8% in March, 8% higher than the same time last year.
Shares in Gloucester Coal Ltd (GCL) have been placed in a trading halt as the company waits to receive a proposal offer from major shareholder Noble Group. Macarthur Coal Ltd (MCC), who currently has a takeover offer on the table for Gloucester, also placed its shares in a trading halt pending an announcement regarding Peabody Energys interest in the company. Last week Macarthur rejected a $3.3 billion takeover bid from US based Peabody Energy. Macarthur plans to issue shares to Noble Group at $9.70 a share, with Noble saying a merger between Gloucester and Macarthur has been unanimously supported. Gloucester Coal shares last traded at $9.31, and Macarthur Coal shares last traded at $14.87.

Geothermal energy company Panax Geothermal Ltd (PAX) says a drilling rig at its Salamander-1 well in South Australia has produced steam. According to the Australian Associated Press, when the well was opened in March, Federal Energy Minister Martin Ferguson revealed that the governments renewable energy targets would not be met if geothermal power was not realised. Panax Geothermal says it plans to have a demonstration plant in operation by 2011 if all goes well at the Salamader-1 well. Panax Geothermal posted a loss in the year to June 30, 2009.

National Australia Bank Ltd (NAB) has come out and pledged not to exceed any interest rate rise handed down by the Reserve Bank today. Experts are saying that the RBA could go either way today when it announces its interest rate decision at 2:30pm Sydney time.

NABs move challenges its rivals who have passed on hefty hikes to customers due to increased bank funding costs. The banks rivals, Westpac and the Commonwealth Bank have both indicated in recent weeks that they are under pressure to lift rates over that of the RBA.

As the top banks vie for customers it is unlikely they will risk facing the public backlash that followed Westpac after it lifted rates by 45 basis points last December. Following a fall in retail sales in February and weak building approvals many say the RBA is not likely to want to upset already wary customers. However on the other hand a surge in prices of Australias largest commodity exports may encourage the RBA to lift rates. NAB posted profit of close to $2.6 billion in the 12 months to September 30, 2009.

The best performing sector at midday is the Materials index, up 209 points at 13,276.

The worst performing sector is the Health Care index, down 36 points to 8,947.

Gold is trading at US$1,128.80 an ounce and the Aussie dollar is trading at 91.84 US cents.

ZGM: In 0.067c out at .10c(Watching to re enter)
OBJ: .035c/.038c
IPL: Short at $3.49
SIP: watching

http://www.marketwatch.com/
http://www.thebull.com.au/
http://www.news.com.au/business/