Following a positive lead from Wall Street the Australian share market lifted at open and is trading 0.3 per cent higher at noon. A stronger oil price has boosted the energy sector to the best performer, offsetting losses in the mining sector.
The Australian Bureau of Statistics has shown new home loans rose less than expected in February. Home loans increased by 1.2 per cent in the same month interest rates were cut to a new record low of 2.25 per cent.
Figures
The S&P/ASX 200 index has added 14 points to 5,947. On the futures market the SPI is 8 points higher.
Company news
Wesfarmers Limited
(ASX:WES) owned Coles has been slapped with a $2.5 million penalty for making false claims over its bread. The Federal Court says the supermarket giant was found to have broken the law by falsely advertising its bread as ‘baked today’ and ‘freshly baked’ when it was not. Coles was found to have misled consumers last year and says it has since changed its packaging and in-store signage to clarify how its bread is made. Shares in Wesfarmers have gained 0.47 per cent and are trading at $43.93.
Fortescue Metals Group Limited
(ASX:FMG) has welcomed a senate inquiry into corporate tax avoidance and says it is proud of its strong relationship with the Australian Taxation Office. The Pilbara focussed iron ore miner has advised it pays about 30 per cent tax on its profits, which is consistent with the Australian company tax rate. Fortescue also pays an extra 7.25 per cent of revenue in royalties to the West Australian Government. Shares in Fortescue Metals Group have fallen 2.12 per cent and are trading at $1.85.
Best and worst performers
The best performing sector is energy, gaining 1.2 per cent to 11,196. Shares in Karoon Gas Australia Limited
(ASX:KAR) have risen 3.15 per cent and trading at $2.46. Shares in Senex Energy Limited
(ASX:SXY) and Beach Energy Limited
(ASX:BPT) are also stronger.
The worst performing sector is materials, falling 0.6 per cent to 9,100. Shares in Sandfire Resources NL
(ASX:SFR) have fallen 2.3 per cent, trading at $4.25. Shares in Fortescue Metals Group Limited
(ASX:FMG) and Newcrest Mining Limited
(ASX:NCM) are also lower.
Gold and the dollar
Gold is buying $US1,194 an ounce.
The Australian dollar is buying $US0.7704.
