A five per cent jump in the oil price over the weekend has stimulated a recovery in energy stocks with the Australian shares continuing Friday’s rally. The ASX opened strongly and has advanced 1.13 per cent by noon.
The S&P/ASX 200 index is 58 points up at 5,397. On the futures market the SPI is 42 points higher.
Company newsKathmandu Holdings Limited (ASX:KM, NZX:KMD)) has flagged a dip in first half profit after disappointing sales in the lead up to Christmas. After enjoying a 19 per cent rise in sales to mid-November, sales have now slowed to a 14 per cent increase to 21 December which is well below the same pre-Christmas sales period last year. Acting CEO Mark Todd says that full year profit depends second half trading which contributes up to 70 per cent of total year profit. Shares in Kathmandu are trading down 18.94 per cent at $2.14.
Transfield Services Limited
(ASX:TSE) has rejected a sweetened takeover offer from Spanish company Ferrovial Services. Ferrovial upped its offer from $1.95 to $2.00 per share however members of the Transfield board knocked back the offer as it still did not reflect the underlying value of Transfield Services shares. Ferrovial is believed to have walked away from negotiation with shares in Transfield Services now trading 13.41 per cent lower at $1.55.
Best and worst performersThe best performing sector is energy, gaining 3.1 per cent to 11,739. Shares in Liquefied Natural Gas have risen 9.17 per cent and are trading at $2.62. Shares in Drillsearch and Whitehaven Coal are also stronger.
The only sector making losses this morning is utilities, falling 0.8 per cent to 5,903. Shares in APA Group have fallen 1.83 per cent, trading at $7.51. Shares in AusNet Services and AGL Energy are also lower.
Gold and the dollarGold is trading at $US1,196 an ounce.
The Australian dollar is buying 81.42 US cents.
