With no lead from Wall St, US markets being closed for Independence Day, the Australian share market managed to open higher but has since pared gains, ahead of the Reserve Bank’s decision on interest rates due at 2:30pm this afternoon.
The S&P/ASX200 index is steady at 4,612 at noon. On the futures market the SPI is 3 points lower.
Economic news
A survey has revealed services sector activity declined for the second consecutive month. According to the Australian Industry Group and Commonwealth Bank, the Performance of Services Index fell 1.4 points to 48.5 points in June. 50 is the level that separates contraction from expansion. Also out today, the Australian Bureau of Statistics has reported Australia’s trade surplus widened in May, coming in at $2.333 billion, seasonally adjusted, compared with an upwardly revised surplus of $1.617 billion the month before.
Company news
Shares in OM Holdings Ltd (ASX:OMH) have risen after announcing it will ditch its proposed dual listing in Hong Kong, following its major shareholder, Consolidated Minerals, launching legal action to fight the move. The manganese producer has also revealed that it is considering splitting its smelting and trading businesses. Shares in OM Holdings have risen 8.94 per cent and are trading at $0.975 at noon.
Shares in Voyager Resources Ltd (Public, ASX:VOR) have surged more than 17 per cent after the mineral explorer said it had identified high-grade copper intersections at its project in Mongolia. At the end of last week Voyager received a price and volume speeding ticket from the Australian Securities Exchange after its share price leapt up 41 per cent. Shares in Voyager Resources have surged 17.78 per cent, and are trading at $0.053 at noon.
Sectors
The best performing sector is Materials, gaining 41 points to 13,558. Shares in Arafura Resources have added 5.73 per cent and trading at $0.83. Shares in Iluka Resources and BHP Billiton are both stronger at noon. The worst performing sector is Health Care losing 50 points to 8,458. Shares in Mesoblast have dropped 2.42 per cent and trading at $8.48. Shares in CSL and Sonic HealthCare are also weaker at noon.
New Zealand
The NZSX50 is 3 points 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 0.4 per cent at $2.54 followed by ANZ, Telstra and Westpac.
Gold and the dollar
Gold is trading at $US1,497 an ounce and the Australian dollar is buying $US1.0702 cents.
