After yesterday’s disaster session the Australian share market has made a modest rebound on the back of strong leads from Wall Street and is tracking 0.57 per cent higher at noon. The local bourse jumped at the open, but since took a backward turn at around 11am. We have seen a rebound in the financials and materials sectors with gains in the big miners BHP and Rio Tinto and all of the big four banks. Not such a great start to the session for the energy space however with Santos and Oil Search falling into the red once again.
The S&P/ASX 200 index is 30 points up at 5,249. On the futures market the SPI is 44 points higher.
The latest NAB Business survey has reported that the business confidence index rose slightly to +6 index points in August, which is consistent with the long-term average of +6. The bank says the RBA’s 25 basis point cut to interest rates may have further bolstered sentiment in August.
StarPharma Limited (ASX:SPL) has announced that its VivaGel condom has received approval in Canada. Starpharma’s marketing partner Ansell is planning to launch the condom in Canada under the Lifstyles Dual Protect brand. The company says the VivaGel condom is the only condom of its type providing barrier protection and a patented anti-viral lubricant technology. Shares in Starpharma are trading up 1.52 per cent at $0.67.
Evolution Mining Limited (ASX:EVN) has told investors it expects to achieve incremental production growth for at least the next three years. For FY17 the gold miner says it forecasts 800-860 thousand ounces and slightly higher in 2018 of 820-880 thousand ounces. Shares in Evolution Mining are trading up 2.72 per cent at $2.46.
Best and worst performers
The best performing sector is Materials, gaining 1.1 per cent to 8,544. Shares in Saracen Minerals have risen 6.2 per cent and trading at $1.41. Shares in Fortescue and Newcrest are also stronger.
The worst performing sector is Energy, falling 0.6 per cent to 8,022. Shares in Oil Search have fallen 1.82 per cent, trading at $6.46. Shares in Origin Energy and Santos are also lower.
Gold and the dollar
Gold is trading at $US1,331 an ounce.
The Australian dollar is buying $US0.7552.