Following a stellar lead from Wall Street the Australian share market has followed suit, jumping at the open and surging 1.16 per cent higher at noon. The financials space along with materials are once again leading the charge with Rio Tinto jumping more than 3 per cent and the big banks adding to yesterday’s gains by about 1 per cent. The healthcare space has the least gains this session after drug and biotech companies sustained losses on US markets overnight.
The S&P/ASX 200 index is 66 points up at 5,544. On the futures market the SPI is 68 points higher.
Company newsInsurance Australia Group Limited
(ASX:IAG) has provided a strategy update to shareholders and has reaffirmed guidance for the financial year ended 30 June 2017. The company maintains its reported margin guidance of 12.5 per cent to 14.5 per cent assuming no material movements in foreign exchange rates or investment markets. IAG also says it expects further encouraging signs of improvement in the commercial market in Australia. Shares in Insurance Australia Group are trading up 3.93 per cent at $5.82.
Santos Limited
(ASX:STO) has announced it is planning to ramp up sales at its Gladstone LNG project. The oil and gas company says it is hoping to increase project sales to over 6 million tonnes per year over 3 years. The project has the capacity to produce close to 8 million tonnes per year. Shares in Santos are trading up 0.57 per cent at $4.38.
Best and worst performersThe best performing sector is Financials excluding REITs, gaining 1.66 per cent to 7,104. Shares in Insurance Australia Group have risen 3.93 per cent, trading at $5.82. Shares in QBE and OzForex are also stronger.
The sector with the least gains is Healthcare, adding 0.05 per cent to 19,286. Shares in Sirtex Medical have fallen 1.35 per cent, trading at $25.57. Shares in Mayne Pharma and Regis Healthcare are also lower.
Gold and the dollarGold is trading at $US1,175 an ounce.
The Australian dollar is buying $US0.7491.
