Outlook: Aus shares set to open higher

Market Reports

by Jessica Ellerm


Following a mixed night on Wall Street, the Australian share market looks set to open slightly higher this morning. After a strong performance by stocks earlier in the week, investors took a breather on Thursday, awaiting fresh data on the economy and more positive signals a possible June rate hike can be withstood. Oil prices slipped overnight and trading volumes were down. U.S. markets will be closed on Monday for the Memorial Day holiday.
 
US economic news

Data from the U.S. Census Bureau on Thursday showed new orders for durable goods in the U.S. surged 3.4 percent in April. The increase exceeded market expectations of a 0.5 percent rise and was driven mainly by demand for transportation equipment. Due out today is the U.S. first quarter GDP second estimate.
 
Markets
 
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.1 per cent to close at 17,828, the S&P 500 closed flat at 2,090 and the NASDAQ was up 0.1 per cent to close at 4,902.
 
European markets closed up: London’s FTSE gained 0.04 per cent, Paris and Frankfurt both rose 0.7 per cent 
 
Asian markets closed up: Tokyo’s Nikkei and Hong Kong’s Hang Seng both added 0.1 per cent, and China’s Shanghai Composite lifted 0.3 per cent.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 16 points up to finish at 5,388. On the futures market the SPI is 5 points up. 
 
Currencies

The Australian Dollar at 7:20AM was buying $US0.7225 US cents, 49.27 Pence Sterling, 79.31 Yen and 64.56 Euro cents.
 
Company news
 
Infomedia Limited (ASX:IFM) have provided an update on its trading performance for FY16. The company expects to deliver revenue growth of 12 percent for the year and anticipates a net profit after tax in the range of $10.2 million to $10.5 million, down from $13.2 million in the previous financial year. 
 
Shares in Infomedia closed 0.91 per cent up yesterday at $0.555.  
 
Australian Vintage Limited (ASX:AVG) has announced its revenue is 8 percent up on the back of strong branded sales. The company expects net profit after tax for FY16 to be up by 10 to 15 percent on the $7.1 million it delivered last year. Sales of bottled product into the UK and Europe are up 19 percent on last year, as the company moves from a bulk wine producer to a branded business
 
Shares in Australian Vintage closed 7.08 per cent up yesterday at $0.605.
 
Ex-dividends

3 companies are going ex-dividend today:
 
Fonterra Share Fund will pay a dividend of 7.93 cents unfranked
Opus Group Limited will pay a dividend of 11 cents, fully franked
Whitefield Limited will pay a dividend of 8.5 cents, fully franked
 
Commodities

Gold is down $3.90 to $US1,223 an ounce for the June contract on Comex.
Silver has gained $0.08 to $16.34 for July.
Copper is steady $2.10 a pound for July.
Oil has slipped $0.16 to $US49.48 a barrel for June light crude in New York.

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