The Australian sharemarket is 0.5 per cent stronger at noon with signs of strength in the US economy pushing the local market higher.
The S&P/ASX 200 index has gained 20 points and is 4,160. On the futures market the SPI is 28 points stronger.
Company news
Australia and New Zealand Banking Group (ASX:ANZ) chief Mike Smith has warned of higher funding costs at the group’s annual general meeting. Mr Smith says the challenge of slowing credit growth and tightening margins are issues of concern for the bank. Mr Smith says it’s the European debt crisis that’s increasing the cost of funds for Australian banks, adding that the Reserve Bank’s cash rate and bank funding costs are becoming increasingly disconnected. ANZ shares have gained 0.91 per cent, trading at $20.97.
The Australian Competition and Consumer Commission (ACCC) has called for submissions responding to Telstra Corporation Limited’s (ASX:TLS) resubmitted structural separation plans. Submissions must be made by January 13 before the ACCC makes its final decision in February. The corporate watchdog had earlier raised regulatory concerns regarding wholesale ADSL services. Telstra shares have gained 0.77 per cent, trading at $3.285.
Best and worst performers
The best performing sector is Utilities, rising 40 points to 4,583. Shares in Envestra have risen 1.41 per cent and are trading at $0.72. Shares in Spark Infrastructure Group and AGL Energy are also higher.
The worst performing sector is Consumer Discretionary, dropping 14 points to 1,221. Shares in JB Hi-Fi have retreated 15.33 per cent and are trading at $12.70. Shares in Harvey Norman Holdings and Ten Network Holdings are also weaker.
To New Zealand
The NZSX50 is flat.
Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock falling 0.73 per cent to $2.05 followed by Chorus, Westpac and Fletcher Building.
Gold and the dollar
Gold is trading at $US1,579 an ounce and the Australian dollar is buying 99.6 US cents.
