The local market followed Wall Street higher this morning and was almost 1 per cent higher at noon. The banks reversed a run of losses and ANZ was up more than 3 per cent as it reports a lift in profit for the first half.
All eyes are now on the RBA’s interest rate announcement this afternoon, the market is drifting towards a likely cut and surveys of leading economists shows a bias towards a rate cut down to 2 per cent.
The S&P/ASX 200 indexis 55 points up at 5,883. On the futures market the SPI is 65 points higher.
Looking at economic news: The Australian Industry Group says the service industry has contracted slightly in April with its performance of serves index falling 0.5 per cent to 49.7 per cent.
Company news
DEXUS Property Group
(ASX:DXS) has shown a slip in occupancy but a boost in 12 month returns at the end of the March quarter. The property manager says occupancy was at 94.6 per cent which was down on the previous period but unlevered total returns were up more than 12 per cent for the year prior. Shares in Dexus are trading up 0.93 per cent at $7.60.
Share in Ardent Leisure Group
(ASX:AAD) have surged as itreports revenue growth of 17 per cent in the nine months to the end of March. The entertainment and theme park company says its Main Event division was the standout division while Goodlife Health Clubs faced competitive pressure. The report was the first major financial release since the board appointed Deborah Thomas as CEO with their decision vindicated by a strong early result. Shares in Ardent are trading up11.34 per cent at $2.21
Best and worst performers The best performing sector is financials excluding REITs, gaining 1.5 per cent to 7,871. Shares in Australia and New Zealand Banking Group
(ASX:ANZ) have risen 3.81 per cent and trading at $34.51. Shares in Aveo Group
(ASX:AOG) and Challenger Limited
(ASX:CGF) are also stronger.
The worst performing sector is materials, falling 0.4 per cent to 9,658. Shares in BlueScope Steel Limited
(ASX:BSL)have fallen 3.56 per cent, trading at $3.66. Shares in Northern Star Resources Limited
(ASX:NST) and CSR Limited
(ASX:CSR) are also lower.
Gold and the dollar
Gold is trading at $US1,188 an ounce.
The Australian dollar is buying $US0.7845
