After positive offshore leads the Australian share market rose at open. Encouraging local economic data from the Australian Bureau of Statistics has boosted shares more than 1 per cent higher at noon. All sectors are in the black, with energy and telco stocks at the head of the pack and all the major banks and miners making gains.
The S&P/ASX200 index has risen 49 points and is 4,346 at noon. On the futures market the SPI is up 50 points.
Economic news
Manufacturing activity in Australia has sunk to a two year low. The performance of manufacturing index, compiled from the Australian Industry Group and PricewaterhouseCoopers, produced a read of 43.3 in August. The figure was down 0.1 points from the month before and the fifth month from the last six that the index came in under 50, the level that separates expansion from contraction.
The Australian Bureau of Statistics has shown that new private capital expenditure was up 4.9 per cent in the June quarter, beating expectations of a 4 per cent rise.
Retail sales have also come in higher than expected. The ABS says total retail sales in July increased 0.5 per cent. The rise came following two months of falls.
Company news
Mining giant Rio Tinto Limited (ASX:RIO) has lured the former chief financial officer of rival miner BHP Billiton Limited (ASX:BHP) to its board. Rio has appointed Chris Lynch as a non-executive director. Mr Lynch has almost 30 years of experience in the mining and metals industry and also held positions with ASX-listed Transurban Group (ASX:TCL) and Alcoa (ASX:AAI). Shares in Rio Tinto are 1.5 per cent higher, trading at $73.61.
Supermarket giant Woolworths Limited (ASX:WOW) has reportedly appointed former Mitre 10 CEO, Mark Burrows, as general manager of its Home Timber & Hardware business. The Australian Financial Review says the appointment fuels speculation that Woolies could be considering a restructure of its hardware distribution group. The company’s new hardware chain, Masters, today opened its first store to the public in Melbourne. Shares in Woolworths have gained 1.82 per cent, trading at $25.68.
Best and worst performers
All sectors are making gains: The best performing sector is Energy, 223 points higher at 13,778. Shares in Caltex Australia have risen 4.71 per cent and trading at $11.33. Shares in Beach Energy and Santos are also stronger. The sector with the smallest gains is Health Care, adding 37 points to 7,827. Shares in Biota Holdings have eased 2.02 per cent and trading at $0.97. Shares in Ansell and Greencross have also retreated.
New Zealand
The NZSX50 has lifted 8 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 0.98 per cent at $2.565 followed by Sky City Entertainment Group, Fletcher Building and ANZ Bank.
Gold and the dollar
Gold is trading at $US1,821 an ounce. The Australian dollar is buying $US1.0719 cents.
