Following positive leads, the Australian share market opened higher and is 1.09 per cent up at noon. Encouraged by Wall Street’s performance, energy shares continue to lead the ASX to higher ground, even as RBA assistant governor Kent warned investors not to expect a strong rebound in commodity prices.
The S&P/ASX 200 index is 55 points up at 5,059. On the futures market the SPI is 71 points higher.
Economic news
The RBA meeting minutes for November highlighted the Reserve Bank board feel current inflation levels provide further room for easing if required, as prospects for economic improvement firmed slightly. Meanwhile the ANZ-Roy Morgan weekly consumer confidence read has dipped 0.6 percent on concerns over the outlook for the Australian economy.
Company news
Westpac Banking Corporation
(ASX:WBC) has announced the sale of the remaining 22.7 million shares in its retail shortfall bookbuild. The shares were sold at a clearing price of $29.50. The lender reported it has completed its $3.5 billion equity raising. Shares in Westpac are trading up 0.57 per cent at $30.19.
The a2 Milk Company Limited
(ASX:A2M) has revised its earnings guidance upwards for the full financial year, following a very positive start to the 2016 financial year. The company is now expecting group revenue of $285 million versus the previous forecast $267 million, alongside group operating EBITDA of $22 million from $12 million. Shares in a2 Milk are trading up 5.95 per cent at $0.89.
Best and worst performers
All sectors are up. The sector with the most gains is Telcos, gaining 1.67 per cent to 1,899. Shares in Telstra have risen 1.74 per cent and trading at $5.25. Shares in TPG Telecom and M2 Group are also stronger.
The sector with the least gains is Materials, gaining 0.8 per cent to 7,333. Shares in Fletcher Building have fallen 1.33 per cent, trading at $6.70. Shares in Arrium and Sims Metal Management are also lower.
Gold and the dollar
Gold is trading at $US1,084 an ounce.
The Australian dollar is buying $US0.7103
