The Australian share market has recovered from its early losses and trading flat at noon as investors digest conflicting economic data from last week. The utilities sector is leading the gains at noon.
The S&P/ASX 200 index is 2 points down at 4,460. On the futures market the SPI is 9 points lower.
Economic news
The Australian Bureau of Statistics has reported housing finance figures for September lifted 0.9 per cent to over 46,000. Economists were expecting a 1 per cent rise for the month. Total housing finance by value rose 3.8 per cent.
Company news Oil Search Limited
(ASX:OSH) says the cost of the LNG joint venture in Papua New Guinea in which it has a 29 per cent stake, has increased by about $US4 billion due to foreign exchange factors. Oil Search will be required to contribute about $US300 milion in additional equity. The project is being operated by Esso Highlands which is a subsidiary of Exxon Mobil Corporation. Shares in Oil Search are trading down 3.06 per cent at $7.13.
Explosives maker Orica Limited
(ASX:ORI) has booked a 37 per cent drop in its full year net profit largely impacted by its bolts and chemicals business Minova which posted an impairment charge of $247 million. Orica’s underlying net profit for the year was $650.2 million and in line with earnings guidance. Orica says it expects an improvement in its underlying performance for the year ahead. Shares in Orica are trading down 3.56 per cent at $24.11.
Best and worst performers The best performing sector is utilities gaining 17 points to 4,932. Shares in AGL Energy Limited
(ASX:AGK) have risen 0.8 per cent and trading at $13.83. Shares in APA Group are slightly higher whilst SP AusNet is steady at noon.
The worst performing sector is materials, falling 60 points to 10,134. Shares in Lynas Corporation Limited
(ASX:LYC) have fallen 6.83 per cent, trading at $0.75. Shares in BlueScope Steel and Incitec Pivot are also lower.
Gold and the dollar
Gold is trading at $US1,734 an ounce and the Australian dollar is buying $US1.039.
