A positive lead from Wall Street lifted the Australian share market higher at open before retreating to be flat at noon, as Europe’s debt woes weighed on sentiment. Better than expected data on US growth appears to have offset a report suggesting the eurozone is headed for a recession.
The S&P/ASX200 index has added 5 points and is 4,290. On the futures market the SPI is 3 points lower.
Economic news
Australia’s economic activity appears to be growing broadly in line with the projected long-term trend, according to a gauge from Westpac and the Melbourne Institute that indicates the likely pace of economic activity three to nine months into the future. The index came in at 3.3 per cent in September, slightly ahead of its long term trend of 3.2 per cent but below Augusts’ rate of 4.5 per cent.
The Australian Bureau of Statistics has reported hourly pay rates rose 0.8 per cent in the September quarter, coming in slightly less than expectations and 0.1 per cent lower than the preceding quarter.
Company news
ANZ Banking Group (ASX:ANZ) has become the first Australian bank to complete a covered bond issue from debt markets in the US. The bank has raised $US1.25 billion from a five-year covered bond issue, one month after laws were changed enabling banks to offer the debt. ANZ says it expects that covered bonds will become an important part of the bank’s term funding strategy as they provide an opportunity to diversify its investor base and reduce the requirement for senior unsecured debt in offshore markets. Shares in ANZ have firmed 0.29 per cent and are trading at $20.76.
Starpharma Holdings Limited (ASX:SPL) has raised $32 million through a share placement to institutional, sophisticated and professional investors. The biotec company plans to put the funds to ramping up a number of product developments. Starpharma says the offer was significantly over-subscribed and as a result one new international institution has become a significant shareholder. An additional share purchase plan for existing shareholders is now to follow, targeting an extra $3 million. Shares in Starpharma Holdings have gained 2.33 per cent and are trading at $1.10.
Best and worst performers
The best performing sector is Industrials, lifting 22 points to 3,488. Shares in Qantas Airways have advanced 6.06 per cent and trading at $1.75. Shares in Seek and Downer EDI are also stronger.
The worst performing sector is Energy, retreating 117 points to 14,041. Shares in Whitehaven Coal have fallen 3.48 per cent and trading at $5.54. Shares in Gloucester Coal and Aquila Resources have also dropped at noon.
New Zealand
The NZSX50 is 22 points lower: Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock easing 1.71 per cent to $2.585 followed by Fletcher Building, Kathmandu Holdings and Westpac.
Gold and the dollar
Gold is trading at $US1,781 an ounce.
The Australian dollar is buying $US1.0151.
