For the third straight session this week, the Australian share market seems to be struggling for direction. It plunged into negative territory at the start of trade and stayed that way for the first two hours of trade. At midday, the local index finally posted some gains and it’s now tracking 0.15 per cent higher.
While most sectors are actually in positive territory, the Financials and Materials sectors are dragging down the index with CBA shedding around 0.4 per cent and the big miners BHP and Rio Tinto tracking lower. Staples are the shining light this session, after supermarket giant Woolworths released some better than expected results.
The S&P/ASX 200 index is up 7 points to 5,798 points. On the futures market the SPI is 28 points higher.
Local economic newsWage growth in Australia remains at a record low according to latest figures from the Australian Bureau of Statistics. The Wage Price Index rose 1.9 per cent through the year to the December quarter 2016. Seasonally adjusted, private sector wages rose 0.4 per cent and public sector wages grew 0.6 per cent.
Company newsFortescue Metals Limited
(ASX:FMG) has reported an almost three-fold increase in net profit for 1H FY17. The iron ore miner’s net profit jumped 283 per cent to US$1.22 billion and revenue increased 34 per cent to US$4.5 billion. Fortescue declared an interim dividend of 20 cents per share fully franked for the half year. Shares in Fortescue Metals are trading down 2.09 per cent at $7.02.
Bega Cheese Limited
(ASX:BGA) has reported a 15.8 per cent increase in net profit to $15.69 million for 1H FY17. The cheese manufacturer also saw a 10.6 per cent increase in revenue to $621.13 million for the period. Bega says a number of factors impacted on the company’s revenue including adverse weather conditions and a reduction in milk processed. Shares in Bega Cheese are trading up 2.22 per cent at $5.52.
Best and worst performersThe best performing sector is Staples, gaining 1.6 per cent to 9,290. Shares in Coca-Cola have risen 6.66 per cent and are trading at $10.57. Shares in Tassal Group and Woolworths are also stronger.
The worst performing sector is Financials excluding REITs, falling 0.4 per cent to 7,464. Shares in AMP have fallen 3.25 per cent, and are trading at $4.92. Shares in Commonwealth Bank and Genworth Mortgage Insurance are also lower.
Commodities and the dollarGold is trading at $US1,237 an ounce.
The Australian dollar is buying $US76.78.
