The Australian share market has posted a healthy start to the day, rising up to 0.8 per cent despite the International Monetary Fund cutting forecasts for global growth in 2012. Most sectors are trading higher led by gains in the financials.
The S&P/ASX 200 index has gained 32 points and is 4,257. On the futures market the SPI is 33 points higher.
Economic news
Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute’s leading indexes of economic activity fell to a two year low at the end of last year. The index, which indicates the likely pace of future economic growth, eased to 1.6 per cent in November 2011 from 2.3 per cent the month before and under the long term trend of 2.8 per cent.
Company news
Coal developer Bandanna Energy Limited (ASX:BND) has confirmed it is in talks with companies regarding the joint development of its key Bowen Basin projects. Responding to an ASX price query and media speculation, Bandanna says a number of third parties have been granted due diligence, including Korea’s Samtan Co. Bandanna has also confirmed that it has received one proposal which it is currently assessing but says there is no certainty that it will eventuate. Shares in Bandanna Energy have eased 2.16 per cent and are trading at $0.68.
Shares in Canada's Alacer Gold Corporation (ASX:AQG) have slumped to the top 200’s worst performer after posting quarterly production results and guidance. The dual listed gold producer says production rose 1 per cent in the December quarter from the quarter before while full year production exceeded guidance, coming in just over 421,000 ounces. Alacer gold expects this year’s gold production to reach between 420,000 - 440,000 ounces. Exploration expenditure is forecast to increase to $US58 million in 2012. Shares in Alacer Gold have slumped 9.57 per cent and are trading at $9.36.
Best and worst performers
Most sectors have advanced: The best performing sector is Financials Excluding Real Estate Investment Trusts gaining 68 points to 4,638. Shares in Westpac Banking have lifted 2.62 per cent and trading at $21.12. Shares in IOOF Holdings and Challenger are also stronger.
The only sector in the red is Energy, losing 32 points to 13,791. Shares in Aurora Oil & Gas are 4.76 per cent lower, trading at $3.00. Shares in Cue Energy Resources and Beach Energy have also lost value.
New Zealand
The NZSX50 is 13 points 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 up 3.12 per cent to $2.15, followed by Fletcher Building, Westpac and Chorus.
Gold and the dollar
Gold is trading at $US1,667 an ounce.
The Australian dollar is buying $US1.0515.
