Following strong offshore leads and a pro-austerity party victory in the Greek elections on Sunday, the Australian share market jumped at open and is 1.5 per cent up at noon.
The S&P/ASX 200 index is 58 points up at 4,116. On the futures market the SPI is 68 points higher.
Economic news
The Australian Bureau of Statistics has reported an increase of new motor vehicle sale for May. 91,994 new vehicles were sold, up from 89,812 in April. In the year to May new motor sales rose 22.4 per cent.
Company news
Western Australia based Little World Beverages Limited (ASX:LWB) has reached an agreement with brewing and dairy manufacturer Lion to acquire 63.7 per cent of the company that it does not already own, and offered $5.30 per share via a scheme of arrangement. The deal is subject to support from 50 per cent of shareholders as well as regulatory and foreign investment approval. Shares in Little World are trading up 35.88 per cent at $5.15.
Qantas Airways Limited (ASX:QAN) has seen its budget airline Jetstar under investigation by the Civil Aviation Safety Authority, following a landing incident in New Zealand earlier this month. Two pilots have been stood down. Jetstar says, the “A320 aircraft landed safely in Auckland after diverting from Christchurch due to poor weather,” a spokesperson has confirmed issues with the aircraft’s “flaps”.The news follows a substantial hit to the airline’s shares as well as downgrades in its profits. Qantas announced last month it aims to grow Jetstar in Asia.Shares in Qantas are trading up 1.3 per cent at $1.17.
Best and worst performers
The best performing sector is Materials gaining 204 points to 9,820. Shares in Lynas Corporation Limited (ASX:LYC) have risen 9.66 per cent and trading at $0.96. Shares in Oz Minerals and Rio Tinto are also stronger.
The worst performing sector is Utilities, falling 32 points to 4,955. Shares inSP AusNet (ASX:SPN) have fallen 7.93 per cent, trading at $1.04. Shares in APA Group and Hastings Diversified are also lower.
Gold and the dollar
Gold is trading at $US1,622 an ounce and the Australian dollar is buying $US1.011.