The share market is higher as the impact of a massive takeover offer for logistics group Toll and rising energy prices offsets weakness in the financial sector.
It was a volatile morning of trade due to positive overseas factors and negative local news, Quay Equities head of trading Tristan K’Nell said.
“The market had opened on positive sentiment on the back of speculation that the Greek government will submit a request this evening to extend its rescue loan agreement with the EU,” he said.
“However it lost steam very quickly as it did yesterday, as corporate earnings again had a poor day of reports.”
Insurance Australia Group was one company that disappointed, as its half year profit dropped 10 per cent, and its shares were down 57.5 cents, or nine per cent, at $5.815 at noon (AEDT).
That weighed on other insurers, with Suncorp down 65 cents at $14.01 and QBE five cents weaker at $11.74.
But earnings reports were somewhat overshadowed by a $6.5 billion takeover offer for Toll, from Japan Post, which sent Toll shares soaring and benefited other companies in the industrial sector.
Toll shares were up $2.84, or 47 per cent, at $8.92, while Brambles had gained 30 cents to $10.74 and Asciano was up 24.5 cents at $6.555 after Tuesday’s falls on its disappointing outlook for the years ahead.
The largest company to report earnings was Woodside, which posted a 38 per cent rise in annual profit and outlined plans to cut more than 300 jobs as part of spending cuts.
Woodside shares were up $1.17 at $36.08, while Oil Search had added seven cents to $8.50 and Santos was four cents higher at $8.22.
The banks were mixed, with Commonwealth Bank up 26 cents at $90.26, Westpac up four cents at $37.71, National Australia Bank down seven cents at $37.49 and ANZ 34 cents weaker at $34.65.
The mining sector was also mixed, with BHP Billiton up 14 cents at $32.69, Rio Tinto down 33 cents at $63.17 and Fortescue Metals 10 cents weaker at $2.45.
KEY FACTS
* At 1210 AEDT on Wednesday, the benchmark S&P/ASX200 index was up 27.2 points, or 0.46 per cent, at 5,885.2 points.
* The broader All Ordinaries index was up 25.5 points, or 0.44 per cent, at 5,847.8 points.
* The March share price index futures contract was 23 points higher at 5,843 points, with 13,975 contracts traded.
* National turnover was 800 million securities worth $2.5 billion.
