Buoyed by a positive finish on Wall Street the Australian share market leapt up strongly at open and is 2.8 per cent higher at noon. Climbing up from recent two year lows, gains have been led by the big banks and miners with energy stocks also bouncing back from yesterday. Shares in Commonwealth Bank of Australia (ASX:CBA) have added around 2 per cent since having reported a record full year cash profit of $6.835 billion.
The S&P/ASX200 index has advanced 112 points and is 4,146 at noon. On the futures market the SPI is 104 points stronger.
Economic news
Consumer sentiment has continued to slump or the fourth straight month. Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute have shown the consumer confidence gauge fell 3.5 per cent to 86.9 in August. Westpac's Chief Economist, Bill Evans, says the last time the index fell into the 85–90 range was during the Global FInancial Crisis.
Company news
Westfield Group (ASX:WDC) is expanding into Brazil. The shopping centre investor will spend $440 million to acquire a 50 per cent stake in Almeida Junior Shopping Centers. The company will be renamed as Westfield Almeida Junior, and marks the Westfield's first new market entry since entering the UK in 2000. Chairman Frank Lowy says, “While the climate in the world financial markets is volatile at present this transaction is in the group's long term investment and funding plan”, and,one that has been investigated for an extensive period of time. Shares in Westfield Group have slipped 0.26 per cent and are trading at $7.77.
Shares in Beach Energy Limited (ASX:BPT) climbed as much as 12 per cent in morning trade after the company reported the results from a successful shale gas evaluation. Beach has booked an initial 2 trillion cubic feet of resource from its shale gas drilling in the Cooper Basin. The assessment opens up the potential for a greater volume of gas to now be recovered from the area. Shares in Beach Energy have climbed 9.24 per cent and are trading at $1.005.
Best and worst performers
Most sectors have bounced back into the black: The best performing sector is Materials, advancing 421 points to 12,244. Shares in Iluka Resources have risen 13.29 per cent and trading at $16.20. Shares in Platinum Australia and Lynas Corporation have also gained. The only sector in the red is Real Estate Investment Trusts easing 7 points to 728. Shares in Charter Hall Retail REIT have retreated 2.7 per cent and trading at $2.88. Shares in Abacus Property Group and Dexus Property Group have also weakened.
New Zealand
The NZSX50 has lifted 99 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 4.01 per cent at $2.465 followed by Fletcher Building, Scott Technology and Sky City Entertainment Group.
Gold and the dollar
Gold is trading at $US1,754 an ounce and the Australian dollar is buying $US1.0357 cents.
