The Australian share market followed Wall Street leads to open higher and is 1.6 per cent up at noon, rebounding from yesterday’s losses as investors pounce on cheaper entry points following stock sell offs yesterday. Better than expected retail sales data has also provided a boost to the market.
The S&P/ASX 200 index is 78 points up at 5,089. On the futures market the SPI is 68 points higher.
Economic news
The Australian Industry Group/ Commonwealth Bank’s performance of services index rose 3.1 points in February, to sit at 48.5 points. The sub 50 reading indicates continued contraction in the sector, although signs indicate recent interest rate cuts are providing a timely boost.
The Australian Bureau of Statistics says retail sales beat analyst expectations in January, rising 0.9 per cent to $21.58 billion. Analyst expectations had been for a 0.4 per cent rise.
Company news
Property developer Australand Property Group
(ASX:ALZ) says several companies have expressed an interest in buying either all or parts of its business. The company, which has combined property assets valued at more than $2 billion, says it is making certain information available to selected parties in order to determine whether any proposals can be developed, but offered no guarantee that any proposal will eventuate. Shares in Australand are trading up 1.46 per cent at $3.47.
Lottery ticket retailer Jumbo Interactive Limited
(ASX:JIN) has received an indefinite license to sell official lotteries via the web and mobile in the German state of Schleswig Holstein. The company says it plans to acquire similar contracts in other German states, citing an enormous potential for growth for the Internet lottery market in Germany’s population of 80 million, 65 million of which are internet users. Shares in Jumbo Interactive are trading up 12.92 per cent at $2.36.
Best and worst performers The best performing sector is Financials excluding real estate investment trusts, gaining 157 points to 6,354. Shares in Bank of Queensland Limited
(ASX:BOQ) have risen 3.34 per cent and trading at $9.29. Shares in AMP Limited
(ASX:AMP) and Lend Lease Group
(ASX:LLC) are also stronger.
The worst performing sector is Utilities, falling 46 points to 5,493. Shares in AGL Energy Limited
(ASX:AGK) have fallen 1.61 per cent, trading at $15.85. Shares in SP AusNet
(ASX:SPN) and Envestra Limited
(ASX:ENV) are also lower.
Gold and the dollar
Gold is trading at $US1,575 an ounce and the Australian dollar is buying $US1.021.