News: Midday: ASX led higher by the big four banks

.

 

Following steady leads from overseas markets, the Australian share market is being lead higher by the big four banks and is 0.55 per cent up at noon. 

 

The S&P/ASX 200 index is 30 points up at 5,516. On the futures market the SPI is 20 points higher. 

 

Company news

 

Papillon Resources Limited (ASX:PIR) has today released a quarterly report again recommending the proposed merger with B2 Gold Corp (TXS:BTO). The $615 million all-stock merger values Papillion at $1.72 per share saw the stock price jump when it was announced in early June. Papillion has seen its share price gain nearly 100 per cent since the start of the year after the company received full approval for its Fekola gold mine in Mali. Early site works have begun at the project with the feasibility study on the way. Production is expected sometime in the 2016 financial year. Shares in Papillon Resources are trading 0.53 per cent stronger at $1.90. 

 

Buru Energy Limited (ASX:BRU) has released an operations update  outlining its appraisal activity and tight gas pilot exploration program. Buru Energy recently gained approval from traditional Aboriginal owners for its testing program in the Canning Basin in Western Australia. However the project is behind time as no work was able to commence until the approvals were confirmed and the company is now running into more delays with the approaching wet season. Buru has implemented a three phase program that is now expected to deliver the results of its fracking by August 2015. Buru also says its program of staff and cost reduction and internal re-organisation is now almost complete and it has enough cash on hand to complete all proposed activities for the remainder of 2014. Shares in Buru Energy are trading 6.5 per cent lower at $0.94. 

 

Best and worst performers

The best performing sector is telco services, gaining 0.9 per cent to 1,869. Shares in Telecom New Zealand have risen 2.17 per cent and trading at $2.60. Shares in iiNet and TPG Telecom are also stronger. 

 

The worst performing sector is utilities, falling 0.5 per cent to 5,994. Shares in SP Ausnet have fallen 1.29 per cent, trading at $1.34. Shares in Spark Infrastructure and AGL Energy are also lower. 

 

Gold and the dollar

Gold is trading at $US1,337 an ounce.

The Australian dollar is buying 94.00 US cents.