Banks bounce: Aus shares 0.71% higher at noon

Market Reports

by Carolyn Herbert

It has been a positive start to the trading day for the Australian share market, bouncing at the open and tracking sideways in the first two hours of trade, up 0.71 per cent at noon. The Financials space is the star performer this session, with the big banks up around 3 per cent following APRA’s move to make banks safer, requiring the banks to increase their minimum capital reserves. We’ve also seen some solid gains in REITS and Consumer Discretionaries. On the other hand, Materials is the biggest weight on the index with losses in the big miners BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO), as well as the gold stocks. 

The S&P/ASX 200 index is 40 points up at 5,728. On the futures market the SPI is 38 points higher.

Checking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.6 per cent, Hong Kong’s Hang Seng has gained 0.2 per cent and the Shanghai Composite has gained 0.35 per cent.

Company news

Capitol Health Limited (ASX:CAJ) has agreed to sell its NSW radiology assets to I-Med Radiology Network for $81.5 million. The transaction was subject to FIRB approval, with Capitol confirms has now been received. The diagnostic imaging provider says the transaction is likely to be completed by the end of August. Shares in Capitol Health are trading up 3.06 per cent at $0.25.

Monadelphous Limited (ASX:MND) has announced it has been awarded a number of new work packages with a combined value of around $55 million. The construction giant’s contracts comprise one in Mongolia and one near Broome, Western Australia for Shell Australia’s project in the Browse basin. Monadelphous says its particularly pleased with the Mongolian contract, as it highlights the expansion of its core services overseas. Shares in Monadelphous are trading up 0.54 per cent at $14.88.

Best and worst performers

The best performing sector is Financials excluding REITs, gaining 2.55 per cent to 7,340. Shares in ANZ (ASX:ANZ) have risen 3.85 per cent and trading at $29.39. Shares in Westpac (ASX:WBC) and NAB (ASX:NAB) are also stronger.

The worst performing sector is Materials, falling 1.55 per cent to 9,910. Shares in St Barbara (ASX:SBM) have fallen 7.28 per cent, trading at $2.48. Shares in Northern Star (ASX:NST) and Regis Resources (ASX:RRL) are also lower.

Gold and the dollar

Gold is trading at $US1,241 an ounce.
The Australian dollar is buying $US0.7929.



 

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