Rebound rally: Aus shares track 1.06% higher at noon

Market Reports

by Carolyn Herbert

The Australian Share market has had a stellar start to the Tuesday trading session, after an uninspiring session yesterday. Taking its lead from a bounce in US markets, the local bourse jumped at the open and has since gathered momentum throughout the session and is now tracking 1.06 per cent higher at noon. The energy and materials sectors are doing the bulk of the heavy lifting so far this session with Santos gaining almost 3 per cent and BHP gaining around 2.5 per cent.

The S&P/ASX 200 index is 56 points higher at 5,407. On the futures market the SPI is 59 points higher.

Company news

CIMIC Group (ASX:CIM) says it has now become the largest shareholder of UGL Limited (ASX:UGL), with an interest 32.29%. The construction and mining contractor giant offered $3.15 per UGL share as the offer terms. The majority of the UGL board has advised that its shareholders accept the offer. Shares in CIMIC Group are trading up 0.59 per cent at $30.75.

A2 Milk Company (ASX:A2M) has told investors at its AGM that it is looking to adopt a dividend policy following completion of the financial year. In the first 4 months of FY17, the milk manufacturer says EBITDA/sales increased to 22.9 per cent, reflecting continued growth in infant formula sales. Revenue also came in at $155.2 million, a 96 per cent increase on the $76 million amount in the first four months of FY16. Shares in A2 Milk are trading up 7.36 per cent at $2.12.

Best and worst performers

The best performing sector is Energy, gaining 2 per cent to 8,780. Shares in Worley Parsons have risen 4.1 per cent and trading at $9.15. Shares in Santos and Beach Energy are also stronger.

The sector with the least gains is Financials excluding REITs, adding 0.5 per cent to 6,862. Shares in Platinum Asset Management have fallen 2.35 per cent, trading at $5.41. Shares in CYBG and Credit Corp are also lower.

Gold and the dollar

Gold is trading at $US1,219 an ounce.
The Australian dollar is buying $US0.7383.




 

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