Following positive offshore leads and shrugging off the political turmoil in Canberra, the Australian share market opened sharply higher and is 1.4 per cent up at noon. All the major sectors are currently higher, with some strong early gains among retailers leading the way.
The S&P/ASX 200 index is 68 points up at 4,800. On the futures market the SPI is 63 points higher.
Company news
Elders Limited
(ASX:ELD) has elected 4 year board member Mark Allison as its new chairman as part of its long term plans to become a pure play rural services business. Mr Allison, with extensive agricultural experience, will replace John Ballard, who advised the board he would step down ahead of the planned restructure. Shares in Elders are trading up 5.88 per cent at $0.07.
Rio Tinto Limited
(ASX:RIO) has suspended coal shipments from northwest Mozambique following threats from the opposition Renamo party to disrupt the Sena railway, the ‘coal corridor’ to the Indian Ocean. Rio says it has paused its operations on the rail line whilst it assesses the situation, however production at its Benga mine, currently in a ramp up phase, is continuing. Shares in Rio Tinto are trading down 1.16 per cent at $51.30.
Best and worst performers All major sectors are higher. The best performing sector is Consumer discretionary gaining 41 points to 1,589. Shares in Myer Holdings Limited
(ASX:MYR) have risen 7.08 per cent and trading at $2.42. Shares in JB Hi-Fi Limited
(ASX:JBH) and Tatts Group Limited
(ASX:TTS) are also stronger.
The sector with the fewest gains is Materials, adding 14 points to 8,487. Shares in Independence Group NL
(ASX:IGO) have fallen 5.51 per cent, trading at $2.40. Shares in Rio Tinto Limited
(ASX:RCO) are lower while OZ Minerals Limited
(ASX:OZL) are slightly up at noon.
Gold and the dollar
Gold is trading at $US1,238 an ounce and the Australian dollar is buying $US0.9323.
