Despite mixed leads the Australian share market bounced more than 1 per cent at open and is 0.7 per cent higher at noon. Investors have shrugged off a warning from ratings agency Standard and Poor’s and instead remained hopeful Europe’s leaders will implement an action plan at this week’s EU Summit. All sectors are adding value, led by the telcos, miners and financials.
The S&P/ASX 200 index has risen 32 points and is 4,294. On the futures market the SPI is now 33 points higher.
Economic news
The Australian economy grew as expected in the three months to the end of September. According to the Australia Bureau of Statistics gross domestic product increased a seasonally adjusted 1 per cent in the September quarter from an upwardly revised 1.4 per cent increase the quarter before. In the year to September GDP increased a seasonally adjust 2.5 per cent.
Construction in Australia improved in November, but still remained within the range that indicates contraction. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index increased 4.9 points to 39.6 in November. The read, below 50, indicates contraction.
Company news
Shares in PanAust Limited (ASX:PNA) have lifted on news production at its Phu Kham copper-gold project in Laos rebounded in November. Phu Kham was impacted by severe rainfall in June and July which limited production rates in the September quarter. PanAust now advises it remains on track to meet its full year production guidance. Shares in PanAust Limited have lifted 0.59 per cent and are trading at $3.41.
Dart Energy Limited (ASX:DTE) has entered into a Memorandum of Understanding for its first gas sales deal in New South Wales and downstream project. The project will include a $65 million glasshouse development in Newcastle and is due to be finished by early 2013. Dart Energy will supply natural coal seam gas to the project to produce heat and electricity supplied from a small number of wells in its Fullerton Cove licence area. Shares in Dart Energy have gained 1.51 per cent and are trading at $0.472.
Best and worst performers
All sectors have added value: The best performing sector is: Telco Services putting on 12 points to 1,108. Shares in Telecom Corporation of New Zealand have risen 1.98 per cent and trading at $1.545. Shares in Hutchison Telecommunications and iiNet are also stronger.
The sector with the smallest gains is Consumer Staples, adding 27 points to 7,699. Shares in Coca-Cola Amatil have lifted 0.43 per cent and trading at $11.62. Shares in Metcash and Goodman Fielder are also higher.
IPOs
Titan Energy Services Limited (ASX:TTN) opened today at $1 per share the same as its listing price of $1 and is currently trading at $1.
New Zealand
The NZSX50 is 7 points higher: Taking a look at the top four stocks by turnover, Chorus is at the top of the list with stock easing 0.66 per cent to $3.03 followed by Telecom Corporation of New Zealand, Goodman Property Group and Westpac.
Gold and the dollar
Gold is trading at $US1,729 an ounce.
The Australian dollar is buying $US1.0279.
