Despite soft off shore leads, the Australian share market made a sharp ascent at the open, lifting 0.4 per cent and hitting a 14-month high, extending gains following the RBA’s interest rate cut yesterday. REIT’s and Consumer Discretionary have also pushed stocks higher at noon.
The S&P/ASX 200 index is 9 points up at 4,442. On the futures market the SPI is 8 points higher.
Economic news
The services sector has contracted for the eighth straight month according to Australian Industry Group and Commonwealth Bank of Australia
(ASX:CBA). The Performance of Services Index (PSI) for September fell 0.5 points to 41.9. The PSI has remained below 50 since February indicating contraction.
New home sales fell to a 15 year low in August according to the Housing Industry Association. New dwelling sales retreated 5.3 per cent. Western Australia reported the biggest decline of 9.4 per cent.
Company news
Media company APN News and Media Limited
(ASX:APN) watered down reports that it had found a buyer for its New Zealand assets as it issued a statement to the market today. The group says its strategic review was ongoing but had nothing to announce at this stage. APN’s Chief Executive Peter Myers made a surprise exit from the company last month. The company recently widened its half year net loss to $319 million. Shares in APN News are trading down 9.3 per cent at $0.39.
Origin Energy Limited
(ASX:ORG) has priced and allocated about $US646 million in seven year medium term notes. Origin’s says the proceeds from the issue will be applied to the refinancing of existing debt and used to fund Origin’s investment into Australia Pacific LNG. Shares in Origin are trading up 0.7 per cent at $11.58.
Best and worst performers The best performing sector is real estate investment trusts gaining 6 points to 948. Shares in Stockland
(ASX:SGP) have risen 2.63 per cent and trading at $3.51. Shares in Goodman Group and Dexus Property Group are also stronger.
The worst performing sector is health care, falling 38 points to 10,513. Shares in Ansell Limited
(ASX:ANN) have fallen 0.91 per cent, trading at $16.41. Shares in CSL and Sonic Healthcare are also lower.
Gold and the dollar
Gold is trading at $US1,775 an ounce and the Australian dollar is buying $US1.022.
