Following positive Chinese manufacturing figures released yesterday the Australian share market rose at open and up 0.5 per cent at noon. Stocks climbed as a series of domestic economic reports rolled in but pulled back from highs ahead of noon.
The S&P/ASX 200 index has gained 21 points and is sitting 4,527. On the futures market the SPI is 22 points higher.
Economic news
Retail sales remained unchanged in October. The Australian Bureau of Statistics reports retail sales stayed flat in October at $21.563 billion, defying expectations for a rise and following a rise of 0.5 per cent the month before.
The ABS also reports company profits dropped more than expected in the third quarter. Company gross profits dropped 2.9 per cent in the three months to the end of September.
Manufacturing has contracted for the ninth consecutive month. The Australian Industry Group’s Australian Performance of Manufacturing Index has dipped 1.6 points to 43.6 in November, remaining below 50 which indicates contraction.
Job advertisements have fallen for the eighth straight month. ANZ Banking Group
(ASX:ANZ) has shown job ads fell 2.9 per cent in November after falling 4.6 per cent the month before.
The TD Securities-Melbourne Institute monthly inflation gauge eased 0.1 per cent in November, after increasing 0.1 per cent the month before.
Company news Woodside Petroleum Limited
(ASX:WPL) says it has struck a deal to pay an initial $US696 million for an interest in Israel’s biggest natural gas field. The oil and gas producer will acquire a 30 percent interest in the Leviathan field and oversee the liquefied natural gas development. While the deal is still subject to a number of conditions and approvals it could be worth more than $1 billion after a final investment decision is made. Shares in Woodside Petroleum have risen 0.95 per cent and are trading at $34.12.
Sundance Resources Limited
(ASX:SDL) has entered into a trading halt today pending an announcement relating to its proposed takeover from its Chinese suitor, Hanlong Mining. The Africa focussed iron ore developer is expecting the delivery of the Credit Approved Terms Sheet under the Revised Scheme Implementation Agreement. The trading halt comes after Sundance last week inked a deal paving the path for the development of its flagship $4.7 billion Mbalam Iron Ore Project which in turn advanced Hanlong’s proposed takeover. Shares in Sundance Resources last traded at $0.39.
Best and worst performers The best performing sector is real estate investment trusts gaining 9 points to 971. Shares in Mirvac Group
(ASX:MGR) have risen 2.04 per cent and trading at $1.50. Shares in GPT Group
(ASX:GPT) and Dexus Property Group
(ASX:DXS) are also stronger.
The worst performing sector is utilities, falling 32 points to 5,068. Shares in Energy World Corporation Limited
(ASX:EWC) have fallen 3.73 per cent, trading at $0.32. Shares in AGL Energy Limited
(ASX:ASK) and SP AusNet
(ASX:SPN)are also lower.
Gold and the dollar
Gold is trading at $US1,718 an ounce.
The Australian dollar
The Australian dollar is buying $US1.04.
