The Australian share market remained steady at open but gained some momentum on the back of the banks and Rio Tinto stock in morning trade. At midday, the market has dipped slightly following GDP data and is currently 0.3 per cent up.
The S&P/ASX 200 index is 12 points ahead at 4,515. On the futures market the SPI is 17 points up.
Economic news
The Australian Bureau of Statistics says the economy expanded below expectations in the third quarter, with Gross Domestic Product data showing a 0.5 per cent rise in the three months to September. For the 12 months to September, GDP rose 3.1 per cent.
Company news
Premier Investments Limited (ASX:PMV) CEO Mark McInnes has reportedly hinted at embarking on a takeover bid for department store chains Myer Holdings Limited (ASX:MYR) and David Jones Limited (ASX:DJR). According to Fairfax reports, the rumour mill has been stoked by Premier’s hiring of 20 senior managers with department store experience in the past 12 months, with nearly $300 million in cash up its sleeve for a potential tilt at the retail giants. Shares in Premier Investments are trading up 0.08 per cent at $6.41.
Freedom Foods Group Limited (ASX:FNP) wholly owned business unit Pactum Australia has approved plans to build a state of the art UHT processing plant at a site in South Eastern Australia. The new plant is designed to meet growing demand for high quality dairy milk in export and domestic markets, including proprietary and private label customers in China. Shares in Freedom Foods are trading steady at $0.72.
Best and worst performers
The best performing sector is Financials Excluding Real Estate Investment Trusts gaining 32 points to 5,328. Shares in Bendigo and Adelaide Bank Limited (ASX:BEN) have risen 1.73 per cent and trading at $8.22. Shares in Suncorp Group Limited (ASX:SUN) and Commonwealth Bank of Australia (ASX:CBA) are also performing stronger at midday.
The worst performing sector is Health Care, falling 77 points to 11,398. Shares in Primary Health Care Limited (ASX:PRY) have fallen 1.13 per cent, trading at $3.96. Shares in CSL Limited (ASX:CSL) and Ansell Limited (ASX:ANN) are also trading lower so far today.
Gold and the dollar
Gold is trading at $US1,698 an ounce and the Australian dollar is buying $US1.047.
