Following stellar leads from Wall Street and with the oil price hitting a 2-week high, the Australian share market shot up at the open and is now tracking 0.2 per cent higher at noon.
Industrials and Energy are leading the charge, tracking around 1 per cent higher on the back of the jump in oil prices, after Saudi Arabia and Russia announced overnight that supply cuts should be extended by nine months.
Most of the major sectors are trading higher, with Financials leading the two declining sectors, as Macquarie Group Limited
(ASX:MQG) and the National Australia Bank
(ASX:NAB) are going ex-dividend today.
The S&P/ASX 200 index is 12 points up at 5,850.
On the futures market the SPI is 32 points higher.
Asian markets Japan’s Nikkei is trading 0.4 per cent higher, Hong Kong’s Hang Seng is 0.4 per cent lower and the Shanghai Composite has lost 0.7 per cent.
Local economic news out todayWe are still waiting for the Reserve Bank Board to release its Board minutes.
Meantime, the ABS has announced new car sales in trend terms have risen 0.1 per cent in April, compared to March. The largest rise in sales was reported in the Northern Territory.
Company newsOrica Limited
(ASX:ORI) has reported a 31 per cent increase in net profit for the six months ending 31 March 2017 to $195 million. The explosives giant also saw improvements in total ammonium nitrate volumes to 1.78 million tonnes. The company says the results reflect a stabilisation in the mining sector and the turnaround will continue in FY17. Shares in Orica are trading 1.97 per cent lower to $18.90.
Wellard Limited
(ASX:WLD) has announced the appointment of Chinese businessman Mr Kanda Lu as an executive director of the company. The cattle export company says Mr Lu possesses considerable experience in Chinese commerce, distribution and marketing. His role will focus on Chinese export initiatives and will be responsible for the development and growth of Wellard’s entry into the Chinese beef cattle market. Shares in Wellard are trading 2.56 per cent higher to 20 cents.
The best and worst performersThe best performing sector is Industrials, gaining 1.2 per cent to 5,754. Shares in Qantas
(ASX:QAN) have risen 3.45 per cent and trading at $4.95. Shares in Downer EDI
(ASX:DOW) and Qube Holdings
(ASX:QUB) are also stronger.
The worst performing sector is Financials, falling 0.23 per cent to 6,666. Shares in NAB
(ASX:NAB) have fallen 3.16 per cent, trading at $31.61. Shares in Macquarie Group Limited
(ASX:MQG) and Henderson Group
(ASX:HGG) are also lower.
Commodities and the dollarGold is trading at $US1,235 an ounce.
The Australian dollar is buying 74.24 US cents.
