The Australian share market opened higher and has gained momentum in early trade following positive economic news from China and in anticipation of the RBA’s interest rate decision later today.
The S&P/ASX 200 index is 27 points up at 4,424. On the futures market the SPI is 31 points higher.
Economic news
The Australian Industry Group and Pricewaterhouse Coopers has reported manufacturing in Australia has fallen 5.6 points to 43.9 in April. A read below 50 indicates contraction.
Company news
Qantas Airways Limited (ASX:QAN) passenger numbers for the financial year to date grew 4.7 per cent from the previous year. The figure includes a 5.2 per cent increase for total domestic passengers and a 1.2 per cent rise in international passengers. Seperately, the airline is cutting 400 jobs from its heavy maintenance bases. Qantas says it no longer needs three separate maintenance bases. Shares in Qantas are trading up 0.31 per cent at $1.64.
After a strong third quarter, Funtastic Limited (ASX:FUN) says improved margins and cost cutting will see it return to profitability in fiscal 2012. The toy distributor expects to post a net profit of $10.4 million. Funtastic secured a three-year licence with LEGO Group last month which the board is confident will translate into increased revenues and profit for the 2013 financial year. Shares in Funtastic are trading up 2.63 per cent at $0.20.
Best and worst performers
The best performing sector is Energy gaining 248 points to 14,362. Shares in AWE Limited (ASX:AWE) have risen 5.44 per cent and trading at $1.84. Shares in Woodside Petroleum and Karoon Gas are also stronger.
The sector with the smallest gains is Financials, gaining 14 points to 4,314. Shares in FKP Property Group (ASX:FKP) have fallen 1.49 per cent, trading at $0.50. Shares in Bank of Queensland and Abacus Property Group are also lower.
Gold and the dollar
Gold is trading at $US1,666 an ounce and the Australian dollar is buying $US1.0413.
