Following positive overseas leads, the Australian share market bounced higher on open, but that relief rally has run out of steam and the local sharemarket is just slightly back in the red at midday, 0.1 percent down. Gains in some of today’s results season winners such as CSL are being offset by losses in the financials space.
The S&P/ASX 200 index is 5 points down at 4,839. On the futures market the SPI is 12 points higher.
Economic news
The Reserve Bank of Australia has released the minutes of the February 2016 monetary policy meeting. The Reserve Bank noted that record low interest rates are supporting household consumption growth. The central bank also acknowledged little prospect of a non-mining investment pickup in the near term, alongside the importance of China demand to terms of trade and the commodities outlook.
Company news
Suncorp Group Limited
(ASX:SUN) has unveiled a new operating model in an effort to deliver its customer strategy and drive future profitability and growth. The insurance giant said it will be restructuring its business into three units: Banking & Wealth, Insurance Australia and Insurance New Zealand. Chief Executive Michael Cameron also unveiled a string of changes to the senior executive team, set to take effect on 1 March 2016. Shares in Suncorp Group are trading up 1.73 per cent at $11.16.
National Australia Bank
(ASX:NAB) has reported an 8 percent lift in earnings to $1.7 billion for the December 2015 quarter. On a statutory basis, the lender announced unaudited net profit for the three months of approximately $1.5 billion. Chief Executive Andrew Thorburn noted higher volumes and stronger margins behind improved revenue growth. Shares in NAB are trading down 0.65 per cent at $24.59.
Best and worst performers
The best performing sector is Materials, gaining 1.4 per cent to 6,848. Shares in Fortescue Metals have risen 7.48 per cent and trading at $1.83. Shares in Oz Minerals and Syrah Resources are also stronger.
The worst performing sector is Telcos, falling 1.3 per cent to 1,950. Shares in Telstra have fallen 1.47 per cent, trading at $5.36. Shares in Spark NZ and TPG Telecom are also lower.
Gold and the dollar
Gold is trading at $US1,209 an ounce.
The Australian dollar is buying $US0.7169
