After weak leads the Australian share market had a steady start to the day, but is slightly higher at noon. The miners have been mainly weaker, pulled down by lower metals prices, while the banks and telco’s have firmed.
The S&P/ASX200 index has gained 19 points and is 4,703 at noon. On the futures market the SPI is 28 higher.
Economic news: Consumer confidence continued to ease in May, falling to the lowest level in almost a year. The Westpac-Melbourne Institute index of consumer sentiment dipped 1.3 per cent to 103.9, from a read of 105.3 in April.
Company news: Macquarie has upgraded its recommendation for fund manager IOOF Holdings Ltd (ASX:IFL) from ‘neutral’ to ‘outperform’. Macquarie claims the stock appears to be fundamentally cheap and has set a 12-month target price of $8.09. Shares in IOOF Holdings have risen 1.63 per cent at noon and are trading at $6.84.
QBE Insurance Group Ltd (ASX:QBE) has raised $US1 billion in 30-year subordinated debt with institutional investors in the United States. The insurance company says the notes have a fixed rate of 7.25 per cent per annum until 24 May 2021 after which the rate will be reset. QBE says the debt will be used to provide long term funding to support its operations. Shares in QBE Insurance Group have added 0.17 per cent at noon and are trading at $18.00.
Best and worst performers: Most are in positive territory, with Telco Services up the top, gaining 14 points at 1,040. Shares in Enerji have advanced 11.76 per cent and trading at just under 2 cents. Shares in Telecom Corporation of New Zealand and Telstra Corporation are both in higher at noon. The worst performing sector is Health Care easing almost 1 point points to 8,704. Shares in Biota Holdings have slipped 1.29 per cent and trading at $1.145. Shares in Ramsay Health Care and Mesoblast have also dipped at noon.
To New Zealand: The NZSX50 is 7 point higher. 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 1.06 per cent at $2.39 followed by ANZ, Fletcher Building and Guinness Peat Group.
Gold and the dollar: Gold is trading at $US1,490 an ounce and the Aussie dollar is buying $US1.0627 cents.
