Buoyed by strong offshore leads and a series of healthy profit results, the Australian share market has started the week almost 2 per cent higher. All sectors are trading in the black, led by solid gains from resource and energy stocks. Commonwealth Bank of Australia (ASX:CBA) is dragging on the financial sector, with the stock going ex-dividend today.
The S&P/ASX200 index has advanced 73 points and is 4,246 at noon. On the futures market the SPI is 82 points stronger.
Economic news
Car sales increased last month, that is according to the Australian Bureau of Statistics. The ABS reports that sales of new motor vehicles were up 8.6 per cent to 84,773 in July. Compared to last year sales are down 0.9 per cent from July 2010.
Company news
Shares in Macmahon Holdings Limited (ASX:MAH) have leapt up amid speculation the engineering contractor has been selected for a coal mining contract in Mongolia. Macmahon has however tried to hose down the talk telling the Australian Securities Exchange, “no formal agreement has yet been reached”. Macmahon has also confirmed that, together with a German company, it is holding negotiations with a Mongolian state-owned miner in regards to a contract for mining operations. Shares in Macmahon Holdings have jumped 6.93 per cent, trading at $0.54.
Shares in Ansell Limited (ASX:ANN) gained after the gloves and condoms maker forecast that earnings per share will increase by up to 12 per cent in fiscal 2012. The guidance comes after Ansell today reported a 2.8 per cent increase in its fiscal 2011 profit, coming in at $122.7 million. Chairman Peter Barnes has announced an increased dividend and also an on-market share buyback of up to five million shares over the next year. Shares in Ansell have risen 5.02 per cent, trading at $13.80.
Best and worst performers
All sectors have are making gains: The best performing sector is Energy, advancing 382 points to 13,880. Shares in Molopo Energy have risen 5.26 per cent and trading at $0.60. Shares in Energy Resources of Australia and Woodside Petroleum are also higher. The sector with the smallest gains is Financials Excluding Real Estate Investment Trusts adding 41 points to 4,503. Shares in Westpac Banking Corporation are 1.51 per cent higher, trading at $20.78. Shares in Bank of Queensland and Lend Lease Group and have also firmed.
New Zealand
The NZSX50 has added 35 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock up 2.36 per cent at $7.80 followed by Telecom Corporation of New Zealand, Wespac and ANZ.
Gold and the dollar
Gold is trading at $US1,741 an ounce. The Australian dollar is buying $US1.0424 cents.
