The Australian share market was higher at noon as market-pleasing annual profit results from Australia's biggest investment bank, Macquarie Group, boosted the financial sector.
All Ordinaries index had added 21 points, or 0.45 per cent, to 4,837.
However the big miners dragged on the market as fear spread through the sector that a new resource tax could be announced by the Australian Government this Sunday as part of an overhaul of the countrys tax system.
Analyst said higher oil prices had helped boost the resources sector, and the likelihood that Greece would accept an austerity package in return for a bailout from its debt problems had given investors a little more appetite for risk.
In economic news: According to data released by the Housing Industry Association today, new home sales increased 0.9% in March following a 5.2% decline in February.
Grocery and liquor retailer Woolworths Ltd (WOW) says third quarter sales rose 4.7% to $12.9 billion compared to $12.33 billion last year. The grocery giant also reiterated its full year earnings guidance for growth of between 8 to 11%. CEO Michael Luscombe says despite the solid third quarter result, lower inflation across food and liquor, the cycling of the Australian Governments stimulus packages, lower petrol prices and interest rates would see sales grow between 3 and 6% compared to previous forecasts for upper single digits growth. Mr Luscombe says consumer spending has tightened in the quarter reflecting consumer concerns about further interest rate hikes and higher petrol prices than last year. Shares in Woollies rose 0.15% to $26.95.
Iron ore miner Atlas Iron Ltd (AGO) has won final government approval for its Wodgina DSO Iron Ore Project in Western Australia, to allow the commencement of mining. The miner says it is now on target to achieve iron ore exports at a combined rate of 6 million tonnes a year from its Wodgina and Pardoo DSO mines in WA by December 2010. Managing director David Flanagan says to take a project from an iron ore discovery to an iron ore mine in less than 18 months is simply remarkable. Mr Flanagan says Atlas is now well positioned to benefit from very strong demand, high iron ore prices moving forward, and to meet its target export rate of 6 million tonnes per annum by the end of this calendar year. Atlas also says drilling has commenced at the Wodgina North iron ore prospect. The miner says Wodgina North has a previously reported exploration target of 20 to 40 million tonnes at 57 - 60% iron ore. Just yesterday Atlas launched a $63.5 million capital raising to fund a substantial increase in production and shipments in the second half of this calendar year. Atlas Iron reported a $63.14 million loss in financial year 2009.
The best performing sector at midday is the Real Estate Investment Trust index, up 16 points to 899.
The worst performing sector at midday is the Consumer Staples index, down 84 points to 7,390.
Gold is trading at US$1,173.60 an ounce and the Aussie dollar is trading at 93.04 US cents.
