Following flat to weakly negative leads, the Australian share market opened slightly lower but soon gained momentum and is 0.28 per cent up at noon.
The S&P/ASX 200 index is 16 points up at 5,452. On the futures market the SPI is 7 points higher.
Looking at economic news: The AIG has reported a big drop in manufacturing for December. The index fell by 3.2 points to 46.9, well below the 50 level that separates contraction from expansion. The drop came despite the Aussie dollar trading at 4 ½ year lows. Analysts say the decline of automotive manufacturing and strong import competition were contributing to the decrease in activity.
Company news CuDeco Limited
(ASX:CDU) has emerged from a trading halt confirming the copper miner will go ahead with a proposed dual listing on the Hong Kong stock exchange. Cudeco says it does not immediately intend to raise any fresh equity through the Hong Kong listing however the dual listing fits with the company’s long term plan of providing access to global institutional investors. CuDeco has recently struck deals with top shareholders, the China-based China Oceanwide and Sinosteel, to increase their stakes in the Queensland copper play. Shares in CuDeco plunged 13.33 per cent to $1.69.
Bank of Queensland Limited
(ASX:BOQ) has appointed Jon Sutton as Managing Director and CEO after the shock resignation of former boss Stuart Grimshaw last August. Mr Sutton was previously the bank’s Chief Operating Officer and has been Acting CEO for the past four months as BOQ underwent an exhaustive international search process. Bank of Queensland chairman Roger Davis said Mr Sutton was the best fit to implement the company’s forward strategy whilst responding to future opportunities and challenges. Mr Sutton’s appointment is effective immediately. Shares in BOQ are trading down 0.41 per cent at $12.15.
Best and worst performers
The best performing sector is utilities, gaining 1.3 per cent to 6,016. Shares in APA Group have risen 2.4 per cent and trading at $7.67. Shares in AGL Energy and Duet Group are also stronger.
The worst performing sector is staples, falling 0.4 per cent to 9,153. Shares in Metcash have fallen 1.9 per cent, trading at $1.81. Shares in Treasury Wine Estates and Woolworths are also lower.
Gold and the dollar
Gold is trading at $US1,190 an ounce.
The Australian dollar is buying 81.06 US cents.
