Following negative leads from US markets after the FOMC’s decision to keep interest rates once again on hold, the Australian share market opened lower this morning. However some upbeat comments from RBA governor Glenn Stevens about Australia’s ability to weather global economic uncertainty have injected some life into the market mid-way through the session; it’s tracking 0.2 per cent higher at noon.
The S&P/ASX 200 index is 9 points higher at 5,156. On the futures market the SPI is up 36 points.
Economic news
Reserve Bank of Australia Governor Glenn Stevens has made an address to the House of Representatives Standing Committee on Economics in Canberra. He told the committee that the Fed will need to raise rates at some point and need to do it “for the US’s sake.” On the local front, he has remained optimistic about Australia’s economic outlook.
Company news Rhinomed Limited
(ASX:RNO) says it has raised $2.5 million by way of a placement of more than 78 million shares at 3.2 cents per share. The funds raised will be used to support recently announced distribution deals with UK pharmacy chain Boots. Shares in Rhinomed are trading up 2.86 per cent at 4 cents.
Veda Group Limited
(ASX:VED) shares have been placed into a trading halt pending the release of an announcement by the company to the ASX. The data analytics business shares will remain in the trading halt until the earlier of Tuesday the 22nd of September or when the announcement is released. Shares in Veda Group last traded at $2.00.
Best and worst performers
The best performing sector is Utilities, gaining 0.9 per cent to 6,521. Shares in AGL Energy have risen 1.12 per cent and trading at $16.32. Shares in APA Group and AusNet are also stronger.
The worst performing sector is Energy, falling 0.15 per cent to 8,789. Shares in Beach Energy have fallen 3.51 per cent, trading at 55 cents. Shares in Drillsearch and Origin Energy are also lower.
Gold and the dollar
Gold is trading at $US1,131 an ounce.
The Australian dollar is buying 71.88 US cents.
