Despite soft leads from Wall Street, the Australian share market jumped out of the gate to open higher and is 1.05 per cent up at noon. Shares in BHP Billiton continue their downwards trend as iron ore prices hold at a 10-year low. Meanwhile investors are tuned in for an AGM-focused session with annual shareholder meetings from Woolworths, SEEK and Bank of Queensland.
The S&P/ASX 200 index is 50 points up at 5,244. On the futures market the SPI is 49 points higher.
Economic news
The Aussie Dollar tumbled as Private Capital Expenditure figures for the third quarter came in well below expectation. Australian Capex fell 9.2 percent versus market forecasts of a 2.9 percent fall.
Company news
Vocation Limited
(ASX:VET) has been placed into voluntary administration. Despite efforts to raise equity the education group told shareholders that it is now clear that current and potential investors are not willing to inject additional funds into the company. Vocation recorded a statutory net loss of $300.3 million for the 12 months to 30 June. Mr Peter Gothard of Ferrier Hodgson has been appointed to act as voluntary administrator. Shares in Vocation last traded at $0.12.
Transurban Group
(ASX:TCL) consortium acquisition of Brisbane’s AirportLink M7 will not be opposed by the Australian competition watchdog. ACCC chairman Rod Sims said the acquisition would be unlikely to substantially lessen competition in any market. It was also deemed unlikely that the deal would lead to higher tolls for road-users. Shares in Transurban last traded at $10.32.
Best and worst performers
The best performing sector is Financials excluding REITS, gaining 1.5 per cent to 7,054. Shares in Henderson Group have risen 4.19 per cent and trading at $6.46. Shares in Lend Lease Group and AMP are also stronger.
The worst performing sector is Materials, falling 0.6 per cent to 7,192. Shares in BHP Billiton have fallen 2.95 per cent, trading at $19.09. Shares in Oz Minerals and Sandfire Resources are also lower.
Gold and the dollar
Gold is trading at $US1,071 an ounce.
The Australian dollar is buying $US0.7231
