The Australian share market has soared 1 per cent with all sectors trading in positive territory, as investors pin their hopes that the Gillard government will ditch its promise of delivering a fiscal surplus next year.
The S&P/ASX 200 index is 42 points up at 4,551. On the futures market the SPI is 43 points higher.
Economic news
Australia’s trade deficit has widened in October, according to the Australian Bureau of Statistics. The balance on goods and services shows a deficit of $2.08 billion for the month, compared with $1.42 billion deficit in September. Economists’ forecasts had centred on a higher deficit of about $2.2 billion. During the month, exports were flat, while imports rose 3 per cent.
A weakening in Australia’s construction sector continues. According to the AIG/HIA Performance of Construction Index (PCI). Australia’s PCI rose 1.2 points to 37 in November. A reading below 50 indicates contraction. The ongoing slump in commercial and housing construction continues to weigh on the sector.
Company news
Myer Holdings Limited
(ASX:MYR) has blamed economic conditions, the introduction of the carbon tax and a GST loophole on goods bought overseas for its overall weak performance, as it addressed shareholdersat its annual meeting today. Chairman Paul McClintock says the retail sector continues to be impacted by ‘‘a range of macroeconomic factors’’ and pointed to the uncertain political environment in Australia which is affecting businesses and consumer sentiment across the country. Shares in Myer are trading up 1.38 per cent at $2.20.
Vocus Communications Limited
(ASX:VOC) says it’s set to acquire a Newcastle based fibre and data- centre operator called Ipera Commuincations Pty Ltd for $9.8 million. The communications provider says 50 per cent of the purchase price is subject to a twelve month earn out. The acquisition is expected to expand Vocus’ fibre network in the Newcastle region. Shares in Vocus are trading up 1.27 per cent at $1.60.
Best and worst performers
All sectors are higher: The best performing sector is Real Estate Investment Trusts gaining 20 points to 978. Shares in Goodman Group
(ASX:GMG) have risen 4.04 per cent and trading at $4.63. Shares in Westfield Group and Dexus Property Group are also stronger.
The sector with the fewest gains is Utilities adding 2 points to 5,086. Shares in APA Group
(ASX:APA) have fallen 1.23 per cent, trading at $5.60. Shares in SP AusNet
(ASX:SPN) are trading steady whilst Spark Infrastructure Group is slightly higher.
IPOs Mandalong Resources Limited
(ASX:MDD) started trading today with an issue price of $0.20 opening and currently trading at $0.19.
Gold and the dollar
Gold is trading at $US1,703 an ounce and the Australian dollar is buying $US1.048.
