Following positive leads from US markets, the Australian share market opened weaker and bounced to be 0.36 per cent up at noon. The market is shaking off a slew of weak earnings reports with stocks such as UGL, Bluescope Steel and Brambles suffering the reporting blues. The banks and financial services sector are providing some support
The S&P/ASX 200 index is 22 points up at 5,904. On the futures market the SPI is 18 points higher.
Company news
Education group Vocation Limited
(ASX:VET) has plunged in morning trade after emerging from a 5 week trading halt with news of $245 million in write downs. The company considering 30 expressions of interest in its sale and is confident of the completed sale process of a viable ongoing business on by the end of April. Renegotiated bank terms have seen debt facility maturity brought forward 12 months to May 30, 2016. Shares in Vocation Limited
(ASX:VET) dipped as low as 7 cents but have since recovered by midday to be 34 per cent down at $0.17.
Bluescope Steel Limited
(ASX:BSL) has today reported 62 per cent jump in first half underlying net profit but flagged compressed margins in the second half thanks to recent falls in global steel prices. Stronger growth underpinned by the falling dollar will drive earnings for the rest of the year with Bluescope declaring an interim dividend of 3 cents per share, it’s first payout in nearly four years. Shares in Bluescope are trading down 7.39 per cent at $5.14.
Best and worst perfomers
The best performing sector is consumer discretionary, gaining 1 per cent to 1,973. Shares in APN News and Media have risen 4.75 per cent and are trading at $0.94. Shares in Premier Investments and Aristocrat are also stronger.
The worst performing sector is consumer staples, falling 0.3 per cent to 10,009. Shares in Metcash have fallen 2.41 per cent, trading at $1.62. Shares in Bega Cheese and Woolworths are also lower.
Gold and the dollar
Gold is trading at $US1,203 an ounce.
The Australian dollar is buying 78.35 US cents.
