The Australian share market made early gains this morning, lifting more than 20 points at open after the US posted a strong finish on Friday. The ASX has eased off its highs and is 0.3 per cent higher boosted by the health care sector.
The S&P/ASX 200 index is 15 points up at 4,364. On the futures market the SPI is 21 points higher.
BHP Billiton Limited
(ASX:BHP) says it has signed an agreement to sell its wholly owned Yeelirrie uranium deposit in Western Australia to Canada’s Cameco Corporation for $US430 million. The news follows its decision to shelve the expansion of the Olympic Dam copper/uranium mine last week. BHP says it is targeting more material growth options as the reason for selling. The sale is subject to various regulatory approvals. Shares in BHP are trading up 0.24 per cent at $33.17.
Billabong International Limited
(ASX:BBG) has reported a full year net loss of $275.6 million down over 300 per cent on fiscal 2011. EBITDA was at the lower end of its guidance at $131.4 million. Billabong says the soft results were due to sales declines. Its net profit was impacted by significant and exceptional items that resulted in costs of more than $300 million. By removing those special items Billabong generated a net profit was $33.5 million. The surf wear company provided its “transformation strategy” to the market today which included simplifying its business and expanding its digital presence globally. Billabong remains a takeover target of private equity firm TPG which has offered $1.45 cash per share. Shares in Billabong are trading down 1.86 per cent at $1.32.
Best and worst performers The best performing sector is Health Care gaining 60 points to 9,934. Shares in ResMed
(ASX:RMD) have risen 1.42 per cent and trading at $3.58. Shares in Sonic Healthcare and CSL are also stronger.
The worst performing sector is Telco Services, falling 2 points to 1,279. Shares in Telecom Corp of New Zealand (Australia)
(ASX:TEL) have fallen 3.85 per cent, trading at $1.88. Shares in Telstra are lower whilst SingTel is slightly higher.
Gold and the dollar
Gold is trading at $US1,678 an ounce and the Australian dollar is buying $US1.039.
