The Australian share market is higher at midday, boosted by better than expected US jobs data and locally, an increase in job advertisements for August. However, a sharp decline in Macquarie Group’s shares, following its profit downgrade this morning, is weighing on the market.
The S&P/ASX200 index is up 12 points at 4,553 and on the futures market, the SPI200 is up 16.
In economic news: The TD Securities and Melbourne Institute reported consumer inflation increased 0.2 per cent in August, the 10th consecutive monthly rise following the inflation gauge rising 0.1 per cent in July and 0.3 per cent in June. Job advertisements have increased for the fourth consecutive month, the ANZ jobs advertisement series revealing a 2.6 per cent increase in August, from a 1.4 per cent rise the month before, and up 36 per cent from the same time last year.
To company news: Woolworths Ltd (ASX:WOW) plans to divest $900 million of retail sites from its property portfolio, according to the Australian Associated Press. AAP reports that director of property Ralph Kemmler, says while the retailer has a history of shopping centre development, it is not typically a long-term holder of property assets and has plans to sell over 30 neighbourhood and sub-regional shopping centres and then lease back the sites on a long term basis. Shares in Woolworths are 1.06% at up $28.68.
Jetset Travelworld Ltd (ASX:JET) has entered into a trading halt, as shareholders today meet to consider a proposed merger with Stella Travel Services. Last week Jetset received approval from the Australian Competition and Consumer Commission for the merger, and says it expects to complete the deal by the end of September. Stella Travel Services brands include Harvey World Travel and Travelscene American Express, while Jetset Travelworld operates Qantas Holidays and Qantas Business Travel. Shares in Jetset Travelworld last traded at $0.82.
Turning now to market indices: Most indices are in the black at midday, the best performing sector is the Telco Services sector, with the index up 14 points to 985. Shares in Telecom of New Zealand are up 2.17% to $1.65. Shares in Telstra and Singtel are also higher. The worst performing sector at midday is the Utilities sector, with the index down 3 points to 4,380. Shares in Spark Infrastructure Group dropped 0.84% to $1.18. Shares in APA Group and AGL Energy also lower at midday.
To New Zealand now and the NZSX50 is 24 points higher. Taking a look at the top 4 stocks by turnover: Fletcher Building is top of the list with stock up 4.26% at $8.08 followed by; Telecom of New Zealand, Air New Zealand, and APN News and Media.
To gold and the dollar: Gold is trading at $1248 US an ounce and the Aussie dollar is trading at 91.52 US cents.