Following strong leads from Wall Street and positive signs from Europe on dealing with Greece’s debt, the Australian share market opened higher and is 0.4 per cent up at noon.
The industrial sector was the morning’s best performer with shares in Toll holdings streaking ahead a staggering 46 per cent on news of a $6.5 billion takeover by Japan Post. Energy stocks also made gains today.
The S&P/ASX 200 index is 27 points up at 5,886. On the futures market the SPI is 23 points higher.
Economic news Westpac Bank
(ASX:WBC)-Melbourne Institute, Leading Indexes of Economic Activity has forecast below trend growth of 2.75 per cent for the year ahead, factoring in another rate cut by the RBA and the dollar bottoming out at $US0.75 around the middle of the year.
Company news
The sale of New Guinea Energy Limited’s
(ASX:NGE) 50 per cent stake in Petroleum Prospecting to Barracuda Limited, a subsidiary of Santos Limited
(ASX:STO), has received ministerial approval. The oil and gas producer will pay New Guinea Energy $US32 million in cash plus a further $US8 million if petroleum licenses are granted. Shares in Santos are trading up 0.37 per cent at $8.21
Carnarvon Petroleum Limited
(ASX:CVN) has completed the divestment of its Thai assets boosting its balance sheet by $108 million. The oil and gas producer says it has divested its remaining 20 per cent interest in two oil production concessions in Thailand. CEO Adrian Cook says the company is transitioning into a North West shelf focussed business. Shares in Carnarvon are trading flat at $0.18
Best and worst performers
The best performing sector is industrials, gaining 3.2 per cent to 4,594. Shares in Toll Holdings Limited
(ASX:TOL) have risen 46.88 per cent and trading at $8.93. Shares in Asciano Limited
(ASX:AIO) and Qube Holdings Limited
(ASX:QUB) are also stronger.
The worst performing sector is financials excluding REIT, falling 0.3 per cent to 7,953. Shares in Genworth Mortgage Insurance Australia
(ASX:GMA) have fallen 18.38 per cent, trading at $3.31. Shares in Insurance Australia Group Limited
(ASX:IAG) and Suncorp Group Limited
(ASX:SUN) are also lower.
Gold and the dollar
Gold is trading at $US1,209 an ounce.
The Australian dollar is buying $US0.7819
