The winds of parliamentary change in Canberra have seen the Australian share market kick off the trading week stronger, local stocks also getting a boost from positive Chinese economic data as well as a boost in Australian home loan approvals. Local stocks are 0.3 per cent up at noon, with gains in the Materials sector leading the way.
The S&P/ASX 200 index is 19 points up at 5,164. On the futures market the SPI is 24 points higher.
Economic news
Australian Bureau of Statistics has released its housing finance data for July, showing a 2.4 per cent rise in the number of home loans approved. 52,204 loans were approved in the month, up from50,983 in June and ahead of economist forecasts of a 2 per cent rise. Total housing finance by value went up by 1.1 per cent to $24.18 billion.
ANZ says job advertisements have declined 2.0 per cent in August after falling 1.1 per cent in July. Following six consecutive monthly declines, job ads numbers are 19 per cent below year-ago levels in August and only 5 per cent above the lowest level reached during the global financial crisis.
Company news
RHG Limited
(ASX:RHG) has received a further revised takeover proposal from Pepper Australia and Cadence Capital Limited
(ASX:CDM).
RHG Directors say they are assessing the proposal, which offers combinations of cash and Cadence shares, with an increased cash component. Shares in RHG are trading up 1.55 per cent at $0.49.
TFS Corporation Limited
(ASX:TFC) has begun the first commercial Indian Sandalwood harvest from its East Kimberley project in Western Australia. Harvest volumes are in line with the companies estimates thus far, with the first 30 hectare harvest expected to be completed by October. Shares in TFS are trading up 2.45 per cent at $0.83.
Best and worst performers The best performing sector is Materials gaining 79 points to 9,709. Shares in St. Barbara Limited
(ASX:SBM) have risen 8.15 per cent and trading at $0.73. Shares in Beadell Resources Limited
(ASX:BDR) and Northern Star Resources Limited
(ASX:NST) are also stronger.
The worst performing sector is Consumer staples, falling 60 points to 9,813. Shares in Woolworths Limited
(ASX:WOW) have fallen 2.16 per cent, trading at $34.47. Shares in Graincorp Limited
(ASX:GNC) and Coca-Cola Amatil Limited
(ASX:CCL) are also lower.
Gold and the dollar
Gold is trading at $US1,390 an ounce and the Australian dollar is buying $US0.9192.
