With Wall Street falling despite upbeat economic data out of China, the Australian share market started the trading week flat but has pushed higher as earnings reports come in to be 0.6 per cent stronger at noon. The biggest news of the morning is from Newcrest, whose shares are higher despite slumping to a 5.8 billion loss, while JB Hi-Fi and James Hardie also announced full year and quarterly profit lifts respectively.
The S&P/ASX 200 index is 30 points up at 5,086. On the futures market the SPI is 35 points higher.
Company news
David Jones Limited
(ASX:DJS) will attempt to resurrect the fortunes of its poorly performing electronics business via an exclusinve co-branding deal with Dick Smith. Under the three year deal- expected to deliver an investment return within a year- Dick Smith will pay DJ’s a monthly fixed percentage of sales from the joint business, while also taking on its inventory and frontline electronics staff. Shares in David Jones are trading up 0.57 per cent at $2.63.
Billabong International Limited
(ASX:BBG) shares have started the week strongly after New York based hedge fund Coastal Capital International bought a 5 per cent stake in the surfwear retailer. Billabong is still waiting for a green light from the Takeovers Panel scrutinising its debt for equity swap with US firms Altamont and GE Capital after it was challenged by two other hedge funds. Shares in Billabong are trading up 6.78 per cent at $0.63.
Best and worst performers The best performing sector is Materials gaining 240 points to 9,759. Shares in PanAust Limited
(ASX:PNA) have risen 9.28 per cent and trading at $2.12. Shares in Silver Lake Resources Limited
(ASX:SLR) and Medusa Mining Limited
(ASX:MML) are also stronger.
The worst performing sector is Healthcare, falling 156 points to 13,421. Shares in Ansell Limited
(ASX:ANN) have fallen 1.46 per cent, trading at $17.88. Shares in Ramsay Health Care Limited
(ASX:RHC) and CSL Limited
(ASX:CSL) are also lower.
Gold and the dollar
Gold is trading at $US1,330 an ounce and the Australian dollar is buying $US0.9206.
