Continued optimism about stabilisation in the Chinese economy sent Wall Street higher and the Australian share market followed its lead but has lost a bit of early momentum to be trading 0.4 per cent stronger at noon. The ASX continues to hover close to a 2013 high with most major sectors basking in positive territory at this stage. The miners are leading the gains while the big banks are also performing strongly.
The S&P/ASX 200 index is 18 points up at 5,219. On the futures market the SPI is 17 points higher.
Economic news
The Westpac-Melbourne Institute’s Index of Consumer Sentiment has hit a three year high in September, increasing 4.7 per cent to 110.6. Westpac’s chief economist Bill Evans says the outcome of the federal election and record low interest rates played big parts in the strong result.
Company news
McMillan Shakespeare Limited
(ASX:MMS) says investors will have to wait until its AGM in October to be given profit guidance, despite the incoming coalition government proposing to reverse labor’s earlier plans to abolish the tax benefits which it relies heavily on for revenues.
The salary packaging companies shares were obliterated by 50 per cent earlier this year following the labor proposal, and this mornings announcement is the first time it has addressed the market in 6 weeks. Shares in McMillan Shakespeare are trading up 1.82 per cent at $12.56.
Drug developer Unilife Corporation
(ASX:UNS) shares have fallen in early trade after it reported a $22 million loss for the June quarter, attributed primarily to an increase in depreciation expense relating to a loss on equipment disposal. Among its highlights, Unilife says it has recently signed a long term contract with pharmaceutical company Sanofi to supply its anti-thrombotic therapy device Unifill Finesse. Shares in Unilife are trading down 6.84 per cent at $0.55.
Best and worst performers The best performing sector is Materials gaining 93 points to 9,914. Shares in CuDeco Limited
(ASX:CDU) have risen 5.65 per cent and trading at $1.87. Shares in Fortescue Metals Group Limited
(ASX:FMG) and Iluka Resources Limited
(ASX:ILU) are also stronger.
The worst performing sector is Energy, falling 110 points to 14,007. Shares in Drillsearch Energy Limited
(ASX:DLS) have fallen 3.65 per cent, trading at $1.32. Shares in Karoon Gas Australia Limited
(ASX:KAR) and Woodside Petroleum Limited
(ASX:WPL) are also lower.
Gold and the dollar
Gold is trading at $US1,364 an ounce and the Australian dollar is buying $US0.09294.
