Buoyed by strong offshore leads the Australian share market has leapt 1.7 per cent at noon, driven by gains across the board with the financial sector leading the pack. Shares in Woolworths Limited (ASX:WOW) and BHP Billiton Limited (ASX:BHP) have also gained after posting growth in their fourth quarter reports.
The S&P/ASX200 index has advanced 75 points to 4,543 at noon. On the futures market the SPI is 77 points higher.
Economic news
Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute’s Leading Index of economic activity has shown that Australia’s economic growth rate has slumped to its lowest level nearly two years. The index that indicates the likely pace of economic activity three to nine months into the future fell 1.4 per cent to 1.6 per cent in May, coming in under the long-term trend of 3 per cent.
Company news
Shares in Asciano Ltd (ASX:AIO) have jumped after the ports and rail operator said it had inked a new five year container terminals contract with a Danish shipping company. The contract extension will increase the movement of containers per year from 503,000 to 693,000. Asciano’s ports division, Patrick, will now receive an additional 190,000 containers at its Fremantle, Melbourne, and Brisbane terminals. Shares in Asciano have risen 4.32 per cent at noon and are trading at $1.69.
Linc Energy Ltd (ASX:LNC) says it has scrapped plans to buy US oil fields for $US236 million. The company has terminated the contract to acquire the assets in Texas and Louisiana from ERG Resources and will instead pursue other opportunities in the US. Linc says it has informed ERG of “certain alleged title defects” that were identified during due diligence. Shares in Linc Energy are 1.74 per cent higher at noon, trading at $2.92.
Sectors
All sectors are trading in positive territory: Up the top is Financials Excluding Real Estate Investment Trusts, advancing 81 points to 4,128. Shares in Lend Lease Group have added 1.59 per cent and trading at $8.96. Shares in AMP and ASX have also gained. The sector with the smallest gains is Utilities adding 9 points to 4,357. Shares in APA Group have fallen 1.19 per cent and trading at $4.15. Shares in Duet Group have eased and shares in Spark Infrastructure Group are flat at noon.
New Zealand
The NZSX50 has lifted 24 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock up 1.24 per cent at $8.14 followed by Telecom Corporation of New Zealand, ANZ and AMP.
Gold and the dollar
Gold is trading at $US1,588 an ounce. The Australian dollar is buying $US1.0744 cents.
