The Australian share market opened higher following record leads from the Dow Jones after US President Donald Trump announced the new Fed Reserve Chair.
Our local bourse has not only erased its losses from yesterday’s close, but is now tracking 0.5 per cent higher, getting warmer to the 6,000 milestone again.
The majority of the market is seeing good bounce today, with Telcos being the only space that’s trading below the line. Industrials and Reits are boding the best today, followed by the material space, with the Rio (ASX:RIO) extending its rally from yesterday.
The S&P/ASX 200 index is 30 points up or 0.5 per cent higher at 5,962.
On the futures market the SPI is 21 points higher.
Local economic news
Our retail spending was flat in September, according to the ABS, which has seen the likes of Jb-Hi-FI (ASX:JBH) and Flight Centre (ASX:FLT) make modest gains.
Organic baby food company, Bubs Australia (ASX:BUB) has announced a transformation agreement that will see it become Australia’s only vertically integrated producer of goat infant formulae. It comes as Bubs inked a deal to buy NuLac Foods for $25 million, with further payments of $13.4 million over the next 2 years. It also raised $15 million through institutional investors, while it plans to raise $5 million through a share purchase plan at $0.60 per share. Bubs says snapping up the NuLac brand, sales and distribution channels with access to manufacturing in Australia and NZ will enable to firm to capitalize on the growing demand for its powdered and fresh products. Shares in Bubs Australia (ASX:BUB) are trading 2.52 per cent higher at $0.82.
Gold explorer and developer, Gascoyne Resources (ASX:GCY) says construction work at its WA, Dalgaranga Gold Project is well advanced and should see result in first production in 8 months, which is the second quarter of this financial year. The project is also on time and budget. Shares in Gascoyne Resources (ASX:GCY) are trading 2.15 per cent lower at $0.46.
Ophthalmological laser company, Ellex Medical Lasers (ASX:ELX) has received commitments to raise about $23.2 million from US and Australia investors. It will also offer existing shareholders a $5 million share purchase plan at the same price of $1.05 per share. It will use the funds to accelerate sales of its Ellex iTrack device into the specialist MIGS market, that’s tipped to grow from $US240 million to US$1.4 billion in five years. Shares in Ellex Medical Lasers (ASX:ELX) are trading 7.89 per cent lower at $1.05.
Junior exploration company, Tando Resources (ASX:TNO) started trading today. It floated with an issue price of $0.20, opened at $0.35 and is currently trading at $0.39.
Best and worst performers
The best performing sector is Industrials, gaining 0.9 per cent to 6,007. Shares in ALS (ASX:ALS) have risen about 3 per cent and trading at $8.19. Shares in Monadelphous Group (ASX:MND) and Downer Edi (ASX:DOW) are also stronger.
The worst performing sector is Telcos, falling 0.4 per cent to 1,246. Shares in Spark New Zealand (ASX:SPK) have fallen 0.6 per cent, trading at $3.29. Shares in Telstra Corporation (ASX:TLS) and Chorus (ASX:CNU) are also lower.
Commodities and the dollar
Gold is trading at $US1,278 an ounce and one Australian dollar is buying 76.92 US cents.