Following positive offshore leads, the Australian share market started the week stronger and is 0.9 per cent up at noon, with retail stocks posting some strong gains in early trade as investors continue to digest a steady diet of earnings results.
The S&P/ASX 200 index is 45 points up at 5,063. On the futures market the SPI is 54 points higher.
Company news
QBE Insurance Group Limited
(ASX:QBE) is reportedly refusing to rule out job cuts as it seeks to reduce operating costs by over $200 million.
According to various media reports the insurer could cut as many as 700 Australian jobs at the same time as it plans to employ the same number at a Manila-based services centre. More information on the cost cutting program is set to be revealed tomorrow when QBE reports its full year earnings. Shares in QBE Insurance Group are trading down 1.82 per cent at $12.94.
Business and financial services company WHK Group Limited
(ASX:WHG) and financial adviser SFG Australia Limited
(ASX:SNO) have announced a possible merger with the potential to create an entity with a market value of $760 million. SFG has provided the WHK board with a non-binding proposal relating to the potential merger, which it says will deliver substantial synergies and unlock significant shareholder value. Shares in WHK Group are trading up 0.47 per cent at $1.06.
Best and worst performers All sectors are higher at this stage: The best performing sector is Consumer Staples gaining 169 points to 10,044. Shares in Goodman Fielder Limited
(ASX:GFF) have risen 2.10 per cent and trading at $0.73. Shares in Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) are also stronger.
The sector with the least gains is Materials, adding 42 points to 10,711. Shares in OceanaGold Corporation
(ASX:OGC) have fallen 3.96 per cent, trading at $2.18. Shares in Perseus Mining Limited
(ASX:PRU) are lower, while Rio Tinto Limited
(ASX:RIO) is trading slightly higher at midday.
Gold and the dollar
Gold is trading at $US1,575 an ounce and the Australian dollar is buying $US1.029.
