After posting the largest weekly loss in almost two years the Australian share market opened higher but has given up much of those gains by noon. The benchmark was initially buoyed by Wall Street's lead after US stocks surged on the back of a better than expected jobs report.
Across the local board most sectors are higher, fuelled by gains in the energy sector after the price of oil improved. Putting pressure on the bourse, financials, consumer staples and telco services remain weak.
Figures
The S&P/ASX 200 index is trading 11 points stronger at 5,646. On the futures market the SPI is 10 points higher.
Company news
Shares in BHP Billiton Limited
(ASX:BHP) have lifted into the week after providing an update on the board of directors for its $US15 billion spin-off called South32. South32’s board has been strengthened by three new appointments while and another will join next month. Keith Rumble is a current South32 board member but will retire from BHP’s board later this month. The update comes just days after shareholders showed strong support for the demerger with the resolution achieving 98.05 per cent in favour. Shares in BHP Billiton have risen 1.73 per cent and are trading at $31.84.
Telstra Corporation Limited
(ASX:TLS) says it is reaching into China with the network integration of Telstra and Pacnet Business Solutions. The telco advises its multinational customers can benefit from more direct and low latency network connectivity in China. The company believes its network reach and data centre capabilities have greatly increased through its $US697 million acquisition of Pacnet last month. Shares in Telstra Corporation have slipped 0.49 per cent and are trading at $6.14.
Best and worst performers
The best performing sector is energy, gaining 2.3 per cent to 11,649. Shares in Senex Energy Limited
(ASX:SXY) have risen 4.05 per cent and trading at $0.39. Shares in Oil Search Limited
(ASX:OSH) and Origin Energy Limited
(ASX:ORG) are also stronger.
The worst performing sector is financials excluding REIT’s, falling 0.5 per cent to 7,454. Shares in ASX Limited
(ASX:ASX) have eased 1.31 per cent, trading at $41.54. Shares in Westpac Banking Corporation
(ASX:WBC) and Bank of Queensland Limited
(ASX:BOQ) are also lower.
IPOs
Future Fibre Technologies Limited
(ASX:FFT) started trading today. The developer and manufacturer of intrusion detection and security systems floated with an issue price of $0.70, opened at $0.895 and is currently trading at $0.85.
Gold and the dollar
Gold is buying $US1,190 an ounce.
The Australian dollar is buying $US0.7906.
