The Australian share market remained stronger at noon, albeit off its early peak, after better than expected economic growth numbers in the US overnight put a fire under the market.
All Ordinaries rose 71 points, or 1.56 per cent, to 4646.
Some analysts are saying "All guns are blazing for a right royal fire under the market. The market is performing well today and there's no prizes for guessing why, after the sterling performance in the US last night and stocks and commodity prices doing well."
Oil and gas explorer Australian Worldwide Exploration Ltd (AWE) has lowered its production guidance for the year to June 30 2010 from 7 million barrels of oil equivalent to 6.5 million barrels of oil equivalent due to adverse weather at Tui and the planned extended shutdown at BassGas. The company also reported a 25 per cent rise in revenue of $109 million for the September quarter. AWE also reported that oil and gas production of 1.86 million barrels of oil equivalent, down slightly on the previous quarter. Shares in Australian Worldwide Exploration gained 1.16 per cent to $2.62.
The best performing sector at midday is the Real Estate Investment Trust index which is up 33 points to 874. The worst performing sector at midday is the Health Care index, down 102 points at 8,365.
Gold is trading at US$1,046.35 an ounce and the Aussie dollar is trading at 91.47 US cents.
Deutsche Bank rates ELD as Buy - The broker notes ACCC has some issues with the company's proposed sale of ITC Timber to Gunns ((GNS)). Management say it only relates to a small part of the overall transaction, while the broker is of the opinion that Elders and Gunns will be able to work it all out with the ACCC. The broker makes no changes to its forecasts, or target and maintains its Buy call on valuation grounds.
Target price is $0.25 Current Price is $0.18 Difference:$0.08
2 November
Australia AiG performance of manufacturing index, Oct Australia house prices, Q3 Australia TD Securities inflation gauge, Oct China performance of manufacturing index, Oct EU performance of manufacturing index, Oct UK performance of manufacturing index, Oct US construction spending, Sep US ISM performance of manufacturing index, Oct US pending home sales, Sep US vehicle sales, Oct ABV Annual General Meeting (12:30 PM) EKM Annual General Meeting (12:00 PM) HIL Ex div. 2.0c KRS Annual General Meeting (02:00 PM) SDL Annual General Meeting (04:00 PM)
Don't get greedy! This is also very hard to overcome. The story of one Mum/Dad investor who bought a stock when it was around 50c. They watched it grow into a $5-$6 share and still would not sell. They wanted more. They then watched it reduce all the way back down to 50c and now the stock is 10-15c. They still hold all the same shares they bought originally 5 years ago.
