Following strong leads from Wall Street on Friday, the Australian share market has started the week on a positive note and is up 0.48 per cent at noon. The Commonwealth Bank has come out of a trading halt today, following the announcement it would undertake a $5 billion capital raising. Its shares are currently down about 2 per cent, while the other three big banks are in positive territory. In the materials space, BHP, Rio Tinto and Fortescue are leading the gains.
The S&P/ASX 200 index is 25 points higher at 5,381. On the futures market the SPI is 31 points higher.
Company news Santos Limited
(ASX:STO) says it has “no current intention” to undertake a capital raising, after the company’s share price was pushed down to its lowest level in 11 years on Friday. The oil and gas player says it has “ample liquidity” and more than $2 billion in cash and undrawn debt available to it. Santos also says the underlying performance of the business remains strong.
Shares in Santos are trading up 1.34 per cent at $6.07.
Lynas Corporation Limited
(ASX:LYC) has agreed to a long term debt structure with its current debt providers Japan Australia Rare Earths B.V and the Mt Kellett led bondholder group. The rare earths miner says the refinancing strengthens the company’s financial position and underpins the recent initiatives to position Lynas as a sustainable and financially viable business.
Shares in Lynas Corporation are up 10 per cent at 3.85 cents.
Best and worst performers The best performing sector is Industrials, gaining 1 per cent to 4,686. Shares in Aurizon Holdings
(ASX:AZJ) have risen 4.15 per cent and trading at $5.27. Shares in Qube Holdings
(ASX:QUB) and Transfield Services
(ASX:TSE) are also stronger.
The worst performing sector is Energy, falling 0.6 per cent to 9,713. Shares in Worley Parsons
(ASX:WOR) have fallen 2.11 per cent, trading at $7.90. Shares in Oil Search
(ASX:OSH) and Beach Energy
(ASX:BPT) are also lower.
Gold and the Australian dollar
Gold is trading at $US1,116 an ounce.
The Australian dollar is buying 73.7 US cents.
