Shrugging off negative US leads the Australian share market lifted at open and is higher at noon. While the Australian dollar has sunk to an 11-month low and the gold price has hit a four-week low some sectors and stocks are rebounding from this week’s declines. The miners are leading gains, health stocks recovering from the last session’s losses and Virgin Australia Holdings Limited's
(ASX:VAH) stock is flying high after falling to yesterday’s worst performer. Dragging the boarder bourse down is the consumer staple sector, weighed down by blue-chip Wesfarmers Limited
(ASX:WES) sinking after issuing a profit warning.
The S&P/ASX 200 index has gained 10 points and is sitting at 5,176. On the futures market the SPI is 8 points higher.
Economic news
A new report has cast light on tough conditions for Australia’s residential construction industry. The Housing Industry Association’s Trade Availability Index pulled back from 0.22 at the end of 2012 to 0.19 in the first quarter of 2013, with a read above zero indicating oversupply. In the quarterly report of builders and sub-contractors HIA says, while there are signs of a recovery this year it is from a very low starting point.
Company news Wesfarmers Limited
(ASX:WES) owned Target expects its full year earnings to shrink by up to 43 per cent. The conglomerate has advised its retailing brand has been hit by softer sales on the back of a late start to the winter season, excess inventory and higher costs. Managing Director Richard Goyder says while Target’s earnings will be disappointing this year action has been taken to improve its future position. Shares in Wesfarmers have dropped 3.05 per cent and are trading at $42.85.
STW Communications Group Limited
(ASX:SGN) is spreading its wings into Asia through the launch of a digital advertising network called Edge Asia. The marketing content and communications company says its new arm will have a team of more than 450 staff based in five major South East Asia markets. The launch of Edge Asia is part of the company’s strategy to expand its footprint in the region through establishing partnerships in each market and connecting brands and people. Shares in STW Communications Group have fallen 4.35 per cent and are trading at $1.43.
Best and worst performers The best performing sector is materials rebounding 80 points to 9,413. Shares in Evolution
(ASX:EVN) have risen 6.02 per cent and trading at $0.88. Shares in Independence Group NL
(ASX:IGO) and Western Areas Limited
(ASX:WSA) are also stronger.
The worst performing sector is consumer staples, falling 178 points to 10,265. Shares in Wesfarmers Limited
(ASX:WES) have fallen 3.05 per cent, trading at $42.85. Shares Metcash Limited
(ASX:MTS) are also slightly lower while shares in and Graincorp Limited
(ASX:GNC) are slightly higher.
Gold and the dollar
Gold is trading at $US1383, an ounce.
The Australian dollar is buying 97.68 US cents.
