After positive jobs data saw rallying finishes on Wall Street, the Australian share market opened higher and is 1per cent up at noon, with all major sectors in positive territory and mining stocks posting significant gains to start the week. Roughly $20 billion has been added to the markets value in this morning’s broad based rally.
The S&P/ASX 200 index is 51 points up at 5,181. On the futures market the SPI is 43 points higher.
Economic news
Consumer prices remains subdued in April according to the TD Securities Melbourne Institute Monthly Inflation Gauge. The reading increased by 0.3 per cent in April, following a 0.2 per cent rise in March. In the 12 months to April, the gauge rose 2.1 per cent, its equal lowest result in 9 months.
Company news
Boral Limited
(ASX:BLD) says ongoing weakness in the Australian housing sector as well as weaker than anticipated results from its Construction Materials and Building Products operations have hit its third quarter earnings. Earnings in the Construction Materials division fell $19 million below forecast, while the Building Products division saw a further decline in earnings on the back of the high Australian dollar and import competition. Shares in Boral have slipped on the news, they’re trading down 4.5 per cent at $4.46.
Karoon Gas Australia Limited
(ASX:KAR) has made a second oil discovery in its Bilby-1 exploration drilling campaign in the Santos Basin, offshore of Brazil. Executive Chairman Robert Hosking says three out of the four wells drilled in Karoon’s Santos Basin blocks have been successful, placing Karoon in a strong position to create very significant value for its shareholders. Shares in Karoon Gas have spiked, they are trading up 26.07 per cent at $5.03.
Best and worst performers All the major sectors are trading higher at this stage. The best performing sector is Materials gaining 267 points to 9,265. Shares in Mirabela Nickel Limited
(ASX:MBN) have risen 18.18 per cent and trading at $0.13. Shares in Lynas Corporation Limited
(ASX:LYC) and OZ Minerals Limited
(ASX:OZL) are also stronger.
The sector with the fewest gains is Telco services, up 3 points to 1,757. Shares in Singtel Limited
(ASX:SGT) have fallen 1.63 per cent, trading at $3.02. Shares in Telstra Corporation Limited
(ASX:TLS) and TPG Telecom Limited
(ASX:TPM) are trading slightly higher.
Gold and the dollar
Gold is trading at $US1,474 an ounce and the Australian dollar is buying $US1.029.
