Tuesday turnaround: ASX up 0.71% at midday

The Australian share market has rebounded after yesterday’s disappointing performance. Following positive leads this morning, as global investors shrugged off the implications of Italy’s failed referendum, the local bourse jumped 45 points within the first ten minutes of trade.

Although it lost some momentum, Australian stocks are currently tracking 0.71% higher at lunchtime.

Later this afternoon, the Reserve Bank will announce its official cash rate decision. But it’s widely expected that the RBA will maintain the record low 1.5% interest rate.

The S&P/ASX 200 index is 38 points up at 5,439. On the futures market the SPI is 43 points higher.

Company news

The Lendlease Bouygues Joint Venture has given notice to engineering company UGL Ltd (ASX:UGL) that it will terminate their $476 million NorthConnex Project Alliance Agreement. This follows a change in control at UGL, with a hostile takeover by its larger competitor, CIMIC. UGL says it’s currently determining its termination payment entitlements under the Agreement. Shares in UGL are up 0.16% at $3.16.

Traditional Therapy Clinics Ltd (ASX:TTC) has acquired a new therapeutic and wellness clinic in China for $1.32 million. TTC says that the signing of this deal means it will now own 23 such clinics, and this is the twelfth clinic that it acquired since listing on the ASX in September, last year. Settlement of this acquisition is expected to be complete in January 2017. Shares in Traditional Therapy Clinics are trading up 8.7% at 50 cents.

Best and worst performers

The best performing sector is Materials, gaining 1.5 per cent to 9,726. Shares in Iluka Resources have risen 4.32 per cent and are trading at $6.76. Shares in Syrah Resources and Independence Group are also stronger.

The worst performing sector is Utilities, falling 0.7 per cent to 7,443. Shares in Duet Group have fallen 1.28 per cent, are trading at $2.71. Shares in Infigen Energy and AusNet Services are also lower.

Gold and the dollar

Gold is trading at $US1,173 an ounce.
The Australian dollar is buying $US0.7458.