Following positive leads from the US where markets gained over 1 per cent ahead of the weekend, the Australian share market made a solid jump on open and is 1.33 per cent up at noon. Miners are leading the way with BHP up over 4 per cent whilst Macquarie Bank is making strong gains after a profit upgrade. Oil Search is advancing on news it has reached it has agreed on a developmental timeline of its PNG LNG project with the local government.
The S&P/ASX 200 index is 70 points up at 5,369. On the futures market the SPI is 87 points higher
Economic news
The TD Securities Melbourne Institute has indicated that annual inflation rate remains flat at 1.5 per cent bucking the usual December trend for a rise in inflation. December was a surprisingly soft month with inflation dipping by 0.02 per cent. Petrol prices fell by 8.9 per cent offsetting rises in fruit and veg, tobacco and travel & accommodation. The result strengthens the case for a Reserve Bank rate cut later this year.
Company news
Liquefied Natural Gas Limited
(ASX:LNG) is another step closer to financial close and first LNG in its Magnolia LNG project in the US state of Louisiana. LNG has signed EPC Joint Venture with Kellogg Brown and Root and SKE & C USA to deliver the four train project on a 70/30 per cent participation basis. KBR will be the leader of the contract which includes all engineering, construction, start up and performance testing of the LNG project in the Lake Charles district. The US-based subsidiary of LNG, Magnolia LNG says it is on track for financial close by the middle of the year and expects first deliveries of the gas by the end of 2018. Shares in Liquefied Natural Gas are trading 0.43 per cent stronger at $2.31.
OzForex Group Limited
(ASX:OFX) says that it has been informed by Westpac that the bank will no longer be able to supply banking services to the forex broking firm. Westpac says has made a strategic decision to exit the money service industry and the decision in no way reflects any concerns Westpac has with the OzForex business. OzForex will transition its currency payments and term deposits from Westpac to other banks it has working relationships with and expects that this will happen by the end of March. Shares in OzForex slipped over 10 per cent on but have recovered somewhat to be down 4.8 per cent at $2.58 in morning trade.
Best and worst performers
All sectors have enjoyed gains in morning trade The best performing sector is materials, gaining 3.2 per cent to 8,514. Shares in Sandfire Resources have risen 8.66 per cent and trading at $4.14. Shares in Oz Minerals and Beadell Resources are also stronger.
The sector with the least gains is staples, up 0.5 per cent to 9,273. Shares in Metcash have slipped 0.65 per cent to trade at $1.53. Shares in Wesfarmers and Bega Cheese are slightly higher.
Gold and the dollar
Gold is trading at $US1,279 an ounce.
The Australian dollar is buying 82.32 US cents.
