Buoyed by positive leads the Australian share market has advanced 0.8 per cent at open. Gains have been driven by the resources sector with iron ore miners trading strong after the price of iron ore rose back above $US100 per tonne on hopes China will move to stimulate its economy.
The S&P/ASX 200 index has advanced 34 points to 4,360. On the futures market the SPI is 40 points stronger.
Economic news A read of consumer sentiment, taken from a poll of 1,200 people, has edged up. Westpac Banking Corporation
(ASX:WBC) and the Melbourne Institute’s Survey of Consumer Sentiment rose 1.6 per cent to 98.2 in September from 96.6 the month before. Westpac chief economist Bill Evans says the index is clearly stuck in an extended 'cautiously pessimistic' phase, with a read below 100 indicating pessimists outnumber optimists.
Company news The Reject Shop Limited
(ASX:TRS) has finalised a $27.4 million insurance claim arising from damage sustained to its Queensland distribution centre from last year’s floods.The discount retailer says the overall claims settlement was $2.9 million higher than the amount it recorded in the last financial year and will be recognised as other income in its fiscal 2013 result. The Reject Shop has eased 0.08 per cent, trading at $12.49.
Shares in Malachite Resources NL
(ASX:MAR) have rocketed after announcing what it calls outstanding new gold results at its Lorena Gold Project in northwest Queensland. The junior exploration company says follow up assays of samples from the Lady Mary prospect have confirmed a very promising new gold-rich, copper-gold find. Shares in Malachite Resources have rocketed 36.36 per cent and are trading at $0.01.
Best and worst performers The best performing sector is materials gaining 129 points to 9,778.
Shares in Discovery Metals Limited
(ASX:DML) have risen 5.88 per cent and trading at $1.17.
Shares in Arrium Limited
(ASX:ARI) and Atlas Iron Limited
(ASX:AGO) are also stronger.
The worst performing sector is utilities, falling 36 points to 4,971.
Shares in SP AusNet
(ASX:SPN) have fallen 2.93 per cent, trading at $0.99.
Shares in APA Group
(ASX:APA) and Spark Infrastructure Group
(ASX:SKI) are also lower.
Gold and the dollar
Gold is trading at $US1,737 an ounce.
The Australian dollar is buying $US1.044.
