The Australian share market is 1.7 per cent up at noon, having rallied over 1 per cent in early trade after taking off on strong leads from upbeat US economic data. Local stocks have snapped a four day losing streak and wiped off nearly half of the losses registered since Ben Bernanke’s Federal Reserve speech last week, with investors also calming on positive assurances from China’s central bank which has moved to allay the credit crunch fears which suffocated global markets yesterday. All the major sectors are trading higher at this stage.
The S&P/ASX 200 index is 81 points up at 4,737. On the futures market the SPI is 61 points higher.
Economic news
The Bureau of Resource and Energy Economics has forecast a 14 per cent increase in iron ore exports in the coming financial year with the country's big miners pushing ahead with multi-billion dollar expansions despite signs demand growth is softening. BREE predicted iron ore exports of 610 million tonnes in the financial year that begins July 1 after upgrading its forecast for the current year by 11 million tonnes to 533 million tonnes.
Company news
Mesoblast limited
(ASX:MSB) has received approvals from Australian ethics committees to commence a Phase 2 Clinical trial of a proprietary cell platform designed to treat diabetes and chronic kidney disease. Animal trials have proven effective for the platform- known as Mesenchymal Precursor Cells (MPC’s)- in directly reversing abnormal kidney pathology and improving function. Shares in Mesoblast are trading down 0.55 per cent at $5.40.
Paladin Energy Limited
(ASX:PDN) has delayed the outcome of a strategic initiative regarding the sale of a minority equity position in its flagship Langer Heinrich uranium mine in Namibia. The company says a revised bid from one of two interested parties has effected a reconsideration, moving the expected outcome date from the end of June to late August. Shares in Paladin are trading down 7.10 per cent at $0.82.
Best and worst performers All major sectors are higher so far today. The best performing sector is Industrials gaining 93 points to 3,554. Shares in Transfield Services Limited
(ASX:TSE) have risen 10.87 per cent and trading at $0.77. Shares in Bradken Limited
(ASX:BKN) and Seven Group Holdings Limited
(ASX:SVW) are also stronger.
The sector with the fewest gains is Consumer Staples, rising by 47 points to 9,460. Shares in Goodman Fielder Limited
(ASX:GFF) have fallen 3.02 per cent, trading at $0.72. Shares in Wesfarmers Limited
(ASX:WES) and Woolworths Limited
(ASX:WOW) are slightly higher at midday.
Finally, to gold and the dollar: Gold is trading at $US1,257 an ounce and the Australian dollar is buying $US0.9269.
