The Australian share market opened slightly higher this morning ahead of the RBA’s interest rate decision expected later this afternoon and driven up by mining and energy stocks.
The S&P/ASX 200 index is 24 points up at 4,413. On the futures market the SPI is 20 points higher.
Company news
The High Court has ruled Fortescue Metals Group Limited
(ASX:FMG) and its founder Andrew Forrest did not mislead investors. The court upheld Mr Forrest’s appeal against the Australian Securities and Investments Commission, who had alleged Mr Forrest and Fortescue had misled investors about company developments in 2004. The ruling overturns a decision made against Mr Forrest by three Federal Court judges last year. Shares in Fortescue are in a trdaing halt and last traded at $3.50.
Qantas Airways Limited
(ASX:QAN) says it will sell 50 per cent of its Star Track stake to Australia Post. The transaction will see Qantas receive in excess of $400 million and is pending regulatory and shareholder approval. Qantas will also acquire 100 per cent of air freight business Australian Air Express which it already holds a 50 per cent interest in. In other news, the airline has been ordered to pay the tax office $34 million in outstanding GST. The court decided passengers who booked tickets and didn’t arrive for their flights were still provided a service making Qantas liable to pay the GST it collected from those passengers. Shares in Qantas are trading up 2.52 per cent at $1.22.
Best and worst performers The best performing sector is Materials gaining 94 points to 10,040. Shares in Arrium Limited
(ASX:ARI) have risen 5.88 per cent and trading at $0.72. Shares in Atlas Iron and BlueScope Steel are also stronger.
The worst performing sector is Health Care, falling 38 points to 10,423. Shares in CSL Limited
(ASX:CSL) have fallen 0.81 per cent, trading at $45.39. Shares in Mesoblast are lower whilst ResMed is stronger.
Gold and the dollar
Gold is trading at $US1,781 an ounce and the Australian dollar is buying $US1.037.
