After briefly dipping into negative territory, the Australian share market continued with yesterday’s rally and is currently at a two-year high.
Most sectors are in positive territory – with Financials and Energy shares in the lead. Woodside Petroleum
(ASX:WPL) is at a 20-month high. It was boosted by rising oil prices on the back of disruption at Libya’s largest oilfield, which is currently on a production halt.
On the other hand, Materials and Utilities shares are behind the pack. In particular, BHP Billiton
(ASX:BHP), is currently weighing down the market after it rejected an American activist hedge fund’s call to restructure its business and demerge its petroleum assets.
The S&P/ASX 200 index is 30 points (or 0.5%) up at 5,943. On the futures market the SPI is up by 33 points.
Asian marketsJapan’s Nikkei is currently 0.3 per cent lower.
Hong Kong’s Hang Seng is up 0.14 per cent.
The Shanghai Composite is up 0.3 per cent.
Local economic newsNAB has released its Business Survey for March. Business conditions rose 6 points to a reading of +14 – which is at its best since the GFC in 2008, far ahead of the long-run average of +5.
However, business confidence last month fell by 1 point to +6. NAB’s chief economist, Alan Oster, says the results may have been affected by a lower response rate from businesses in North Queensland, which were affected by Cyclone Debbie.
Company newsWoolworths Limited
(ASX:WOW) is facing a class action for its alleged breaches of the Corporations Act, following a surprise profit downgrade in 2015. The class action will be brought on behalf of aggrieved shareholders by law firm, Maurice Blackburn, and may be funded on a “conditional basis” by litigation funder, IMF Bentham
(ASX:IMF). The supermarket giant’s alleged breach of its continuous disclosure obligations led to a 13.7% plunge in its share price. Shares in Woolworths are trading up 0.28 per cent at $26.66.
Sydney Airport Group
(ASX:SYD) has refinanced all its existing $1.4 billion bank debt facilities at lower margins. The company says debt maturities over 2017 - 2019 have been reduced by 82%, with the next maturity date in mid-2018. Sydney Airport also says its average debt maturity has been extended by around six months to late-2023. Shares in Sydney Airport are trading down 0.59 per cent at $6.75.
Best and worst performersThe best performing sector is Financials, gaining 0.97 per cent to 6,887. Shares in BT Investment Management
(ASX:BTT) have risen 2.23 per cent and trading at $11.00. Shares in Platinum Asset Management
(ASX:PTT) and Magellan Financial Group
(ASX:MFG) are also stronger.
The worst performing sector is Utilities, falling 0.4 per cent to 8,917. Shares in DUET Group
(ASX:DUE) have fallen 1.08 per cent, trading at $2.75. Shares in AGL Energy
(ASX:AGL) but APA Group
(ASX:APA) has risen slightly.
Gold and the dollarGold is trading at $US1,255 an ounce.
The Australian dollar is buying $US0.7509.
