Fuelled by strong leads Australian share market bounced at open but slipped in morning trade. The big four banks have dragged after Westpac Banking Corporation (ASX:WBC) blamed subdued market conditions for a 2 per cent fall in third quarter earnings. However, the Reserve Bank of Australia’s latest board meeting minutes have managed to pull us out of the red. The central bank says rates were held steady this month due to acute uncertainty within global markets, adding to speculation they may be on hold for a while.
Figures
The S&P/ASX200 index is 7 points higher at 4,289. On the futures market the SPI is 5 points lower.
Company news
Shares in Qantas Airways Limited (ASX:QAN) have taken off, after the airline unveiled an overhaul of its offshore operations that will slash up to 1,000 jobs. As part of a five-year strategic plan to focus on Asia Qantas will also invest in a new premium airline in Asia, secure more alliances and launch a fleet overhaul. CEO Alan Joyce says the move will establish Qantas on a global platform with growth potential across all markets. Shares in Qantas have lifted 3.92 per cent, trading at $1.59.
Shares in James Hardie Industries (ASX:JHX, NYSE:JHX) have risen despite the building products maker posting a 99 per cent drop in its first quarter net profit. The result was impacted by currency fluctuations and an unfavourable asbestos adjustment. In May James Hardie announced plans to buy back up to 5 per cent of its shares through an on-market share buyback and said that it will resume paying dividends in the 2012 financial year. Shares in James Hardie have gained 3.74 per cent, trading at $5.55.
Best and worst performers
The best performing sector is Real Estate Investment Trusts, adding 15 points to 762. Shares in Stockland have risen 6.64 per cent and trading at $2.89. Shares in Charter Hall Retail REIT and Westfield Group are also higher. The worst performing sector is Financial Excluding Real Estate Investment Trusts shedding 39 points to 4,501. Shares in Westpac Banking Corporation have dropped 3.87 per cent and trading at $20.35. Shares in Commonwealth Bank of Australia and National Australia Bank are also lower at noon.
New Zealand
The NZSX50 is 21 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 the stock gaining 1.77 per cent at $2.59 followed by Fletcher Building, Westpac and AMP.
Gold and the dollar
Gold is trading at $US1,762 an ounce and the Australian dollar is buying $US1.00484 cents.
