With Wall Street bouncing back from last weeks stock falls the Australian share market jumped at open and is 1.1 per cent up at noon, with Woodside Petroleum stocks climbing in early trade after the oil and gas giant announced a special dividend for its shareholders. The local market has just slipped slightly from its early highs however on the back of slowing Manufacturing activity in China.
The S&P/ASX 200 index is 59 points up at 5,025. On the futures market the SPI is 62 points higher.
Economic news
The HSBC Flash Manufacturing Purchasing Managers Index has come in below expectations, trickling down to 51.5 from last months reading of 51.6. According to the data, new export orders contracted following a temporary rebound in March, suggesting external demand for China’s exporters remains weak.
Company news
Oil Search Limited
(ASX:OSH) has maintained its full year production guidance following a lift in its third quarter oil production. Australia’s third largest oil and gas producer lifted its oil production by seven per cent to 1.56 million barrels in the quarter, and expects to deliver between 6.2 and 6.7 million barrels in the full year. Shares in Oil Search are trading up 1.25 per cent at $7.28.
The Reject Shop Limited
(ASX:TRS) has entered a trading half ahead of a $40 million capital raising aimed at funding an accelerated store rollout in the coming financial year. Managing Director Chris Bryce says the costs of opening new stores will push earnings lower in the current half however contribute solidly to underlying profit in fiscal 2014. Shares in The Reject Shop are trading up 0.97 per cent at $16.72.
Best and worst performers All major sectors are basking in positive territory at this point, The best performer is Energy gaining 456 points to 12,825. Shares in Aquila Resources Limited
(ASX:AQA) have risen 9.42 per cent and trading at $2.09. Shares in Woodside Petroleum Limited
(ASX:WPL) and Coalspur Mines Limited
(ASX:CPL) are also stronger.
The sector with the fewest gains is Real estate investment trusts, adding 9 points to 1,090. Shares in Investa Office Fund
(ASX:IOF) have fallen 1.22 per cent, trading at $3.24. Shares in Westfield Retail Trust
(ASX:WRT) are trading in the red while Commonwealth Property Office Fund
(ASX:CPA) shares are slightly up at midday.
Gold and the dollar
Gold is trading at $US1,424 an ounce and the Australian dollar is buying $US1.02.
