Despite positive leads the Australian share market opened lower and is 0.6 per cent down at noon. After gaining more than 5 per cent last week, scepticism over Europe’s debt plan and uncertainty ahead of central bank meetings, at home and abroad this week, appear to have dampened sentiment. Most sectors have slipped into negative territory, led by falls among the banks, retailers and miners.
The S&P/ASX200 index has eased 13 points and is 4,340. On the futures market the SPI is 15 points lower.
Company news
All eyes have been on aviation stocks this morning, with Qantas Airways Limited (ASX:QAN) shares hitting a two month high and Virgin Blue Holdings Limited (ASX:VBA) jumping as much as 8 per cent in morning trade. Analysts have speculated Qantas’ shares are higher because the threat of more industrial action has lowered after Fair Work Australia this morning stepped in and Qantas confirmed it will resume flights this afternoon. Shares in Virgin Blue have lifted amid more commitments from Australia’s second largest carrier to boost capacity in the next weeks and months to absorb the Qantas fall-out. Shares in Qantas have gained 7.12 per cent and are trading at $1.655.
Shares in Flight Centre Limited (ASX:FLT) have dipped despite announcing it expects no material impact from Qantas’ industrial action and subsequent flight groundlings. The travel agent says it has been working around the clock to help customers but was unlikely to incur extra expenses if flights were restored soon as now appears likely. Shares in Flight Centre have dipped 0.75 per cent and are trading at $19.82.
Best and worst performers
Most sectors are lower: The best performing sector is Telco Services, gaining 6 points to 1,071. Shares in Energi have increased 4.55 per cent and trading at $0.023. Shares in Telstra Corporation and Singtel are also stronger. The worst performing sector is Financials Excluding Real Estate Investment Trusts falling 34 points to 4,845. Shares in Perpetual have dropped 1.84 per cent and trading at $22.98. Shares in QBE Insurance Group and Macquarie Group have also retreated.
New Zealand
The NZSX50 is 11 points higher. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock firming 0.45 per cent to $6.74 followed by ANZ, Fletcher Building, Telecom Corporation of New Zealand.
Gold and the dollar
Gold is trading at $US1,744 an ounce. The Australian dollar is buying $US1.0671 cents.
