Buoyed confidence from both on-shore and overseas economic activity helped push Australian shares higher on open and extend yesterday’s gains to sit 0.8 percent up at midday. The resources space is in good shape as iron ore continues its strong run.
The S&P/ASX 200 index is 42 points up at 5,063. On the futures market the SPI is 41 points higher.
Economic news
Australia’s trade balance performed better than expected in January. Data released by the ABS showed a narrowing of the trade deficit to 2.9 billion versus the 3.1 billion forecast.
Company news
Vimy Resources Limited
(ASX:VMY) has announced the appointment of GR Engineering Services Limited (AS:GNG) as study manager for the Mulga Rock Definitive Feasibility Study. The resource development company said the appointment is another milestone in the future development of the Mulga Rock Project. Vimy Resources said the project will have the capacity to produce 1,360tonnes per annum of uranium oxide for up to seventeen years. Shares in Vimy Resources are trading flat at $0.28.
Montech Holdings Limited
(ASX:MOQ) has signed share purchase agreements to acquire all of the shares in TETRAN and Skoolbag. TETRAN is a managed IT services and professional services company, while Skoolbag is a software-as-a-service provider via web and mobile apps. The transactions represent combined additional revenues of $5.5 million. Shares in Montech Holdings are trading up 5.56 per cent at $0.038.
Best and worst performers
The best performing sector is Materials, gaining 1.8 per cent to 7,278. Shares in Sims Metal Management have risen 9.89 per cent and trading at $7.67. Shares in Fortescue Metals and Orora are also stronger.
The worst performing sector is Healthcare, falling 0.5 per cent to 19,678. Shares in Mayne Pharma Group have fallen 4.64 per cent, trading at $1.33. Shares in Mesoblast and Sonic Health are also lower.
IPOs
Ding Sheng Xin Finance Company
(ASX:DXF) started trading today. The financing and non-financing guarantee services provider floated with an issue price of $0.60, opened at $0.49 and is currently trading at $0.61.
Gold and the dollar
Gold is trading at $US1,240 an ounce.
The Australian dollar is buying $US0.7284
