Lifted by positive leads the Australian share market entered onto positive territory at open and is trading 0.3 per cent up at noon ahead of the Reserve Bank of Australia’s (RBA) August interest rate decision this afternoon. Gains in the mining sector are propping up the market while the health care sector is dragging.
The S&P/ASX 200 index is trading 10 points higher at 4,282. On the futures market the SPI is currently 10 points higher.
Economic news
Construction activity in Australia has contracted for the 26th straight month. According to the Australian Industry Group and Housing Industry Association the performance of construction index dropped 2.2 points to 32.6 in July, with a read below 50 indicating contraction.
Company news Shares in Bradken Limited
(ASX:BKN) have jumped after reporting its full year profit has grown 49 per cent to $100.5 million. The mining equipment supplier’s result was boosted by demand from the resource industry. Despite noting an uncertain outlook Bradken has affirmed it has a record number of orders as it steps into the first half of the new financial year. A final fully franked dividend of 41 cents per share has been declared. Shares in Bradken have jumped 6.3 per cent and are trading at $5.49.
Shares in Cochlear Limited
(ASX:COH) have fallen after posting a 68 per cent full year profit drop to $56.8 million. The hearing device manufacturer’s result was hit by the recall of a bionic ear implant, costing the company $101.3 million. CEO Chris Roberts says the global organisation responded well to the recall and market share losses have been minimal. A final dividend of $1.25 per share has been declared, franked 35 per cent. Shares in Cochlear have fallen 5.57 per cent and are trading at $62.70.
Best and worst performers The best performing sector is Materials gaining 75 points to 9,494. Shares in Beadell Resources Limited
(ASX:BDR) have risen 8.59 per cent and trading at $0.70. Shares in Intrepid Mines Limited
(ASX:IAU) and BlueScope Steel Limited
(ASX:BSL) are also stronger.
The worst performing sector is Health Care, falling 134 points to 9,313. Shares in ResMed Inc.
(ASX:RMD) have fallen 1.76 per cent, trading at $3.35. Shares in CSL Limited
(ASX:CSL) and Primary Health Care Limited
(ASX:PRY) are also lower.
Gold and the dollar
Gold is trading at $US1,610 an ounce.
The Australian dollar is buying $US1.057.
