Following a positive lead from Wall Street overnight, the local share market is stronger at midday as news of Spains plan to cut spending gave investors hope that Europe is dealing with its debt situation.
All Ordinaries index was up 57 points, or 1.25 per cent, at 4,657 points.
In economic news: Figures released by the ABS today show that the unemployment rate remained steady at 5.4% in April after March was revised up from 5.3% to 5.4%. Total employment rose by 33,700 in the month, more than the expected 20,000.
AMP Ltd (AMP) CEO Craig Dunn told shareholders at the companys annual general meeting today that its merger proposal for AXA Asia Pacific Holdings (ASX:AXA) remains strategically attractive and would certainly accelerate the companys growth strategy further. Mr Dunn says the company is pleased with the ACCCs decision to block a rival bid made by NAB. He told investors that the transaction still has some way to go, and the companys immediate focus is to work through the relevant regulatory matters. While merger and acquisition activity can provide a useful means to accelerate the companys growth strategy, Mr Dunn says AMP does not see it as a strategic necessity. AMP shares rose 2.23% to $5.97.
Iron ore company Gindalbie Metals Ltd (GBG) has launched an equity raising to raise up to $206.4 million to help fund the development of the Karara Iron Ore Project in Western Australia. The company says the raising will comprise of a $111.8 million share placement via an institutional bookbuild and a placement to its Karara joint venture partner and largest shareholder, Ansteel to raise between $63.2 million and $74.6 million. In addition the company hopes to raise a further $20 million through a share purchase plan for eligible shareholders. Gindalbie says depending on the amount raised in the share purchase plan, the placement to Ansteel will be adjusted to ensure the Chinese steelmaker remains with a 36.12% stake in the company. The proceeds from the raising will be used to fund Gindalbies 50% share of the revised $1.975 billion construction estimate for the Karara project and also the companys share of the project;s $430 million working capital requirements. Managing director Garret Dixon says the capital raising is by far the most significant in the companys history and marks the beginning of an exciting new chapter for the company and its long standing relationship with Ansteel.For the year to June 30, 2009 Gindalbie posted a $26.22 million profit, down on the year before.
All sectors are in positive territory at midday, however the sector with the biggest gain is the Real Estate Investment Trust index, up 15 points at 886.
One of the sectors with smallest gains is the Consumer Discretionary index, up 17 points to 1,607.
Gold is trading at US$1,236.30 an ounce and the Aussie dollar is trading at 89.69 US cents.
PZC: Open bought 3c/.031c MQG:$46.50/$47 DTM: Watching
Fear and Greed
In order to be a successful day trader, you need to have the right tools, choose the right markets, and trade the right trading systems. However, it is just as important to have the right psychological and emotional outlook. Without the right psychology, your emotions will have a big impact on your trading, and may even prevent you from trading at all. The two main emotions that day traders experience are fear and greed, and while you will probably not be able to remove these emotions completely, you will need to manage them.
