The Australian share market is on track to extend the weekly gain – surging up to 0.8 per cent in morning trade before slightly pulling back. Despite a soft finish on Wall Street overnight US stocks remain at near all-time highs. Across the local board the energy, mining and industrial sectors are leading gains with only the telco sector bucking the trend.
The Australian dollar has edged to a one year low and ANZ Banking Group
(ASX:ANZ) shares have lost ground after becoming the last of the Big Four Banks to cut its variable home loan rate by more than the Reserve Bank of Australia's (RBA) surprise cash rate cut earlier this week.
The S&P/ASX 200 index has spiked 39 points and is sitting at 5,237. On the futures market the SPI is 38 points higher.
Company news Qantas Airways Limited
(ASX:QAN) shares have taken off after its Middle East based partner Emirates boosted its annual net profit by 52 per cent and posted 16 per cent passenger traffic growth.
Australia’s biggest airline finalised the Emirates alliance at the end of March which will see both companies codeshare and coordinate sales, marketing and pricing between Australia and Europe, Asia, the Middle East and North Africa. Emirates Chairman says he has no doubt the year ahead will again be more profitable than the last. Shares in Qantas Airways have lifted 0.14 per cent and are trading at $1.82.
Aquila Resources Limited
(ASX:AQA) has lodged an insurance claim for the Isaac Plains Coal Mine worth $94.4 million, despite selling its 50 per cent stake in the Queensland mine last year. The claim is regarding property damage and business interruption caused by flooding at the mine at the end of 2010. The coal explorer says it took nearly 18 months to return production to full capacity following the flooding and expects to advise the market when the claim is settled. Shares in Aquila Resources have dropped 2.23 per cent and are trading at $2.19.
Best and worst performers The best performing sector is industrials gaining 50 points to 3,923. Shares in Brambles Limited
(ASX:BXB) have risen 3.53 per cent and trading at $9.09. Shares in Aurizon Holdings Limited
(ASX:AZJ) and Leighton Holdings Limited
(ASX:LEI) are also stronger.
The only sector trading in negative territory is telco services dipping 1 point to 1,737. Shares in TPG Telecom Limited
(ASX:TPM) have fallen 0.53 per cent, trading at $3.77. Shares in Telstra Corporation Limited
(ASX:TLS) are trading lower while shares in M2 Telecommunications Group Limited
(ASX:MTU) are slightly higher at noon.
Gold and the dollar
Gold is trading at $US1,453 an ounce.
The Australian dollar is buying $US1.008.
