A positive lead from Wall Street lifted the Australian share market almost 1 per cent higher in morning trade. However, shares took a hit after the release of National Australia Bank Limited’s (ASX:NAB) business survey, revealing business confidence last month sunk to levels not seen since the economy was emerging from the Global Financial Crisis.
The S&P/ASX200 index is 34 points higher at 4,072. On the futures market the SPI is up 33 points.
Economic news
National Australia Bank’s business confidence index fell 10 points to -8 in August, dipping below zero for the first time since mid 2009. NAB’s business conditions index pulled back slightly last month, easing 2 points to -3 points in August.
Company news
Shares in Sundance Resources Limited (ASX:SDL) and Bannerman Resources Limited (ASX:BMN) plunged this morning after news broke that Hanlong Mining executives are under investigation from the Australian Securities and Investment Commission for suspected insider trading. Hanlong is Sundance’s largest shareholder and is currently pursuing a takeover of the iron ore miner and also of uranium explorer, Bannerman. ASIC has suspended the passports of a number of Hanlong executives, it says in relation to suspected insider training activities with both Sundance and Bannerman. Sundance has now placed its shares in a trading halt as it prepares a response. Shares in Sundance fell more than 15 per cent this morning, last trading at $0.375.
Saracen Mineral Holdings Limited (ASX:SAR) has swung from full year loss to a net profit of $47.7 million in fiscal 2011. Executive chairman Guido Staltari says Saracen’s first full financial year of gold production was a major milestone for the company. The company delivered 111,163 ounces over the year and is targeting to boost this to 250,000 ounces per annum by fiscal 2015. Shares in Saracen Mineral Holdings have gained 1.29 per cent and are trading at $0.785.
Best and worst performers
Most sectors are trading higher: The best performing sector is Energy, rising 257 points to 12,636. Shares in Aurora Oil & Gas have lifted 3.32 per cent and trading at $2.49. Shares in Beach Energy and Eastern Star Gas are also stronger. The worst performing sector is Real Estate Investment Trusts, easing 2 points to 750. Shares in Westfield Group have dipped 1.33 per cent and trading at $7.43. Shares in CFS Retail Property Trust and Stockland have also retreated.
New Zealand
The NZSX50 has risen 14 points. Taking a look at the top four stocks by turnover, Telecom Corporation at the top of the list with stock up 1.01 per cent at $2.49 followed by Westpac, Fletcher Building and ANZ.
Gold and the dollar
Gold is trading at $US1,828 an ounce. The Australian dollar is buying $US1.0346 cents.
