After some healthy leads the Australian share market edged higher this morning and was up 0.5 per cent after the release of stronger than expected consumer confidence figures, but shares took a hit after weak ABS dwelling data. The telco stocks and miners have been leading gains, with the retailers and health stocks dragging.
The S&P/ASX200 index is 6 points higher at 4,079. On the futures market the SPI is 4 points lower.
Economic news
Consumer confidence has staged a surprising recovery in September, that is according to Westpac and the Melbourne Institute’s index of consumer sentiment. Despite a period of market volatility the jump in consumer confidence was attributed to economic growth, underpinned by higher household confidence amid fading expectations of an interest rate rise this year. The latest read was up 8.1 per cent to 96.9 in September, after falling to a two-year low the month before.
A report from the Australian Bureau of Statistics was less encouraging, showing that Australian dwelling starts fell 4.7 per cent in the second quarter from the first. Total dwelling commencements were down 18.6 per cent over the year to the end of June.
Company news - best and worst performers
Sigma Pharmaceuticals Limited (ASX:SIP) has advanced after posting an interim net profit of $26.65 million in the first half of fiscal 2012. The drug manufacturer and pharmacy support services provider swung out of a loss the year before through a stronger operating performance and growth in underlying sales in the first six months of this year. Sigma says it is pleased with the results that reflect the progress that has been made rebuilding the company. Shares in Sigma Pharmaceuticals have advanced 14.42 per cent at noon and are trading at $0.595.
Cochlear Limited (ASX:COH) has continued to extend losses today after announcing at the start of this week that it will voluntarily recall one if its failed implants. The hearing implant manufacturer is still yet to disclose how much the recall is likely to cost, claiming it is, “difficult to predict at this stage”. While some analysts have speculated the sell off it could be an overreaction, investors don’t appear to feel the same. Shares in Cochlear have shed 6.79 per cent at noon and are trading at $56.02.
Sectors
Most sectors are trading higher: The best performing sector is Telco Services, gaining 10 points to 1,039. Shares in Enerji have risen 9.09 per cent and trading at $0.024. Shares in Telstra Corporation and Telecom Corporation of New Zealand are also higher.
The worst performing sector is HealthCare, falling 61 points to 7,242. Shares in Cochlear have dropped 6.79 per cent and trading at $56.02. Shares in Sonic HealthCare and CSL are also lower.
New Zealand
The NZSX50 is 1 point higher. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 0.2 per cent at $2.51 followed by ANZ, Fletcher Building and Westpac.
Gold and the dollar
Gold is trading at $US1,843 an ounce. The Australian dollar is buying $US1.0329 cents.
