Buoyed by strong positive offshore leads and a Federal Budget without too many surprises, the Australian share market has advanced 1 per cent at noon. The miners are fuelling the gains after metals prices rose and all sectors are trading in positive territory.
The S&P/ASX200 index has advanced 39 points and is 4,765 at noon. On the futures market the SPI is 43 points stronger.
Company news: David Jones Ltd (ASX:DJS) has booked a 1.3 per cent drop in its third quarter sales revenue, reaching $411.7 million on a like-for-like basis. The department store retailer has attributed the result to an improvement in retail conditions due to a later Easter and colder weather, following a 2.7 per cent fall in sales in the second quarter. DJ’s has also confirmed that it expects to deliver both second half and full-year earnings at the lower end of its guidance of between five to 10 per cent growth. Shares in David Jones have risen 3.15 per cent at noon and are trading at $4.59.
Myer Holdings Ltd (ASX:MYR) has posted an even steeper sales decline to that of rival David Jones, booking a 3.1 per cent fall in like-for-like sales in the third quarter. Total sales came in 2 per cent lower at $657 million in a period that CEO Bernie Brookes says was characterising the by cautious consumers with an increased propensity to save. Despite noting a moderate and steady improvement in third quarter sales, the department store retailer expects that its full year net profit will fall by around five per cent from last year’s $169 million result. Shares in Myer have lifted 0.32 per cent at noon and are trading at $3.18.
Best and worst performers, all are in positive territory: The best performing sector is Health Care, adding 112 points to 8,838. Shares in Ramsay Health Care have gained 3.61 per cent and trading at $18.06. Shares in Mesoblast and CSL are both in stronger at noon. The sector with the smallest losses is Consumer Staples, 29 points higher at 7,854 points. Shares in Metcash have eased 0.75 per cent and trading at $3.98. Shares in Ridley Corporation are lower while shares in Coca-Cola Amatil are steady at noon.
To New Zealand: The NZSX50 is up 24 points. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock up 1.79 per cent at $2.28 followed by Fletcher Building, ANZ and Westpac.
Gold and the dollar: Gold is trading at $US1,523 an ounce and the Aussie dollar is buying $US1.0868 cents.
