Midday: ASX reclaims losses

Market Reports

The Australian share market followed strong US leads to leap out of the blocks and is 1.4 per cent up at noon, with all the major sectors- led by REIT’s- trading higher at this stage. The market has reclaimed all of yesterdays losses in the early part of the session, shrugging off deflating NAB business survey results, however the Aussie dollar is teetering at the day’s lows.
 
The S&P/ASX 200 index is 65 points up at 4,875. On the futures market the SPI is 64 points higher. 
 
Economic news
 
Business conditions have fallen to a four-year low in June as trading, profits and employment conditions weakened. The NAB monthly business survey showed a ‘worrying picture for the Australian economy,’ with conditions slipping from minus 4 in May to minus 8 last month. The bank says that a falling Australian dollar appears to have done little to lift spirits, with concerns about global economic conditions likely to be weighing.

The Australian dollar
 
The Australian dollar is buying $US0.91, having fallen as low as $US.9083 cents on the data. 
 
Company news
 
Goodman Group’s (ASX:GMG) European Logistics Fund has raised $775 million of new equity, completing a raising process which it says received total demand in excess of $1.3 billion. CEO Greg Goodman says the strong support from investors is a reflection of the attractiveness of the European logistics property market to large institutional investors. The proceeds will be directed towards prime assets in key European logistics locations. Shares in Goodman Group are trading up 1.24 per cent at $4.89. 
 
Ramelius Resources Limited (ASX:RMS) increased June quarter gold production at its Mt Magnet project in Western Australia by 17.5 per cent on the previous corresponding period. The company says it is undertaking a review of capital and operational costs for the current year to ensure Mt Magnet remains cash flow positive in the currently volatile gold price environment. Shares in Ramelius Resources are trading up 9.52 per cent at $0.12. 
  
Best and worst performers

All the major sectors are currently higher. The best performing sector is Real estate investment trusts gaining 15 points to 1,042. Shares in Charter Hall Group (ASX:CHC) have risen 2.87 per cent and trading at $3.94. Shares in Mirvac Group (ASX:MGR) and Westfield Group (ASX:WDC) are also stronger. 
 
The sector with the fewest gains is Utilities, adding 13 points to 5,415. Shares in APA Group (ASX:APA) have fallen 0.48 per cent, trading at $6.19. Shares in Spark Infrastructure Group (ASX:SKI) are steady while AGL Energy Limited (ASX:AGK) shares are slightly higher. 
 
Gold

Gold is trading at $US1,237 an ounce. 

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?