Strong leads from Wall Street saw the local market push higher on open but by mid morning the gains had been reversed, and towards midday the market was only slightly higher.
The Federal Reserve’s reluctance to put a timeline on an interest rate rise has buoyed global markets as has agreement on a four month extension on Greece’s bailout from the ECB.
Stabilising global threats came amid a mix of local earnings results where Seven Group saw its shares jump despite tumbling profit, a number of major companies going ex-dividend were also a drag on the market.
The S&P/ASX 200 index is 6 points up at 5,933. On the futures market the SPI is 22 points higher.
Economic news
The Australian Bureau of Statistics has shown poor Wage price growth of only 2.5 per cent in the December quarter (year on year), while data on construction work done for the same quarter showed a dip of 0.2 per cent to $50.35 billion.
Company news
Cloud based accounting company Xero Limited
(ASX:XRO) has landed a $NZ133 million investment from Accel Partners which helped push its cash balance to $NZ285 million. An additional investment of $NZ14.3 million came from current shareholder Matrix Capital management. The company says it will focus on innovation and expansion with Russel Fukioka appointed as Xero’s US President. Shares in Xero are trading up 24.94 per cent at $22.09
Shares in Retail Food Group Limited
(ASX:RFG) have jumped on a strong interim profit and upgraded full year profit guidance. The food outlet manager reported a first half net profit of $21.5 million, up 24.4 per cent, while revenue lifter 25 per cent to $97 million. The company says the acquisition of Gloria Jean’s Coffee and Cafe2U has driven outlet growth and profit. Shares in Retail Food Group are trading up 6.88 per cent at $6.99.
Best and worst performers The best performing sector is materials, gaining 1.1 per cent to 9,774. Shares in PanAust Limited
(ASX:PNA) have risen 6.36 per cent and trading at $1.26. Shares in Orora Limited
(ASX:ORA) and Beadell Resources Limited
(ASX:BDR) are also stronger.
The worst performing sector is energy, falling 2.3 per cent to 11,489. Shares in Worleyparsons Limited
(ASX:WOR) have fallen 12.73 per cent, trading at $9.80. Shares in Woodside Petroleum Limited
(ASX:WPL) and Santos Limited
(ASX:STO) are also lower.
Gold and the dollar
Gold is trading at $US1,207 an ounce.
The Australian dollar is buying $US0.7854
