Following positive leads the Australian share market opened higher and is 0.7 per cent up at noon as mining stocks boosted the market and investors await the Reserve Bank of Australia's [RBA] interest rate decision tomorrow.
The S&P/ASX 200 index is 26 points up at 4,388. On the futures market the SPI is 21 points higher.
Economic news
The TD Securities - Melbourne Institute monthly inflation gauge increased by 0.3 per cent in April following a 0.5 per cent rise in March, building a strong case for the RBA to cut interest rates when it meets tomorrow.
The Housing Industry Association has reported new home sales have dropped to the lowest level in more than a decade. New home sales plunged 9.4 cent in March to 5,443 homes Australia wide, following a 3 per cent lift in the month prior.
Company news
National Australia Bank Limited (ASX:NAB) says its first-half unaudited cash profit increased 5.7 per cent and its net profit is expected to fall 16 per cent. The bank says the decline is due to its restructuring of its UK operations which was announced earlier today. Shares in NAB are trading up 0.04 per cent at $25.16.
Coalspur Mines Limited (ASX:CPL) has acquired additional coal leases in the Hinton region in Canada. The expansion now sees the coal explorer with about 55,000 hectares. Coalspur’s CEO and Managing Director says the transaction provides significant value to Coalspur as it has the potential to provide further production growth. Coalspur’s flagship coal project is the Vista Coal Project which has the potential to be one of the largest export thermal coal mines in North America. Shares in Coalspur Mines are trading down 0.58 per cent at $1.72.
Best and worst performers
The best performing sector is Materials gaining 138 points to 10,964. Eureka Energy Limited (ASX:EKA) have risen 40.91 per cent following a takeover bid by Aurora Oil and Gas and is trading at $0.465. Shares in Intrepid Mines and Ramelius Resources are also stronger.
The worst performing sector is Health Care, falling 41 points to 8,915. Shares in CSL Limited (ASX:CSL) have fallen 0.87 per cent, trading at $36.58. Shares in Sigma pharmaceuticals and Ansell are also lower.
Gold and the dollar
Gold is trading at $US1,665 an ounce.
The Australian dollar is buying $US1.449cents.
