News: Midday: Aus shares climb on open

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Following positive leads from light trade in the US, the Australian share market opened higher and is 0.7 per cent up at noon. 

 

The S&P/ASX 200 index is 42 points up at 5,437. On the futures market the SPI is 36 points higher. 

 

Company news

 

Tabcorp Holdings Limited (ASX:VAH) today released a statement saying that it was the priority of its subsidiary, Sky Racing, to ensure the resumption of coverage of NSW and Victorian thoroughbred race meetings as soon as possible. Last week, TVN, which holds the broadcast rights to all Victorian and NSW thoroughbred racing, announced that its NSW and Victorian shareholders agreed on an amicable split, leaving each state responsible for the distribution of its media rights. The rift leaves the future of TVN doubt with the broadcaster at risk of collapse. Shares in Tabcorp are trading up 0.73 per cent at $4.14. 

 

Bank of Queensland Limited (ASX:BOQ) has announced that insurance subsidiary St Andrew’s has reached terms with Bankwest on a new three year deal for its Consumer Credit Insurance. This follows a distribution deal with IMB. BOQ says the agreements will not impact on cash earnings for the 2015 financial year. In fact, it expects the industry-wide trend of diminishing premiums from single CCI products to continue resulting in a 10-15 per cent drop in contributions. Shares in Bank of Queensland are trading up 0.58 per cent at $12.22. 

 

Best and worst performers

The best performing sector is materials, gaining 1.8 per cent to 8,736. Shares in Beadell Resources have risen 10.26 per cent and are trading at $0.21. Shares in Northern Star and Regis Resources are also stronger. 

 

The worst performing sector is real estate investment trusts, falling 0.3 per cent to 1,222. Shares in Charter Hall have fallen 1.88 per cent, trading at $4.70. Shares in Federation Centres and Stockland are also lower. 

 

Gold and the dollar

Gold is trading at $US1,194 an ounce.

The Australian dollar is buying 81.19 US cents.