The ASX has enjoyed a boisterous start to the trading week, touching a five year high in early trade, with investors buoyed by news that hawkish candidate Larry Summers has dropped out of the race to succeed Ben Bernanke as Chairman of the US Federal Reserve. Local stocks are 0.7 per cent stronger at noon, with gains across most major sectors, led by energy. Materials gains are also strong, underpinned by a rally among gold miners.
The S&P/ASX 200 index is 39 points up at 5,258. On the futures market the SPI is 32 points higher.
Company news
Lynas Corporation Limited
(ASX:LYC) has widened its full year loss to $107.4 million, associated in part with costs around the commissioning of its rare earths processing plant in Malaysia. Despite the loss, Lynas has set itself the lofty goal of becoming one of the world’s leading rare earths suppliers, after obtaining its first rare earths products pay cheque before the end of the fiscal year, albeit for a modest $900,000. Shares in Lynas are trading up 6.17 per cent at $0.43.
Insurance comparer iSelect Limited
(ASX:ISU) has reportedly been ordered by the Australian Securities and Investments Commission to hand over internal documents as part of a compliance investigation. According to various media reports, ASIC has demanded all records relating to iSelect’s profit announcement in late august, including financials, emails and meeting minutes. The company says it remains of the view that it fully complied with all regulatory obligations, and ASIC’s request shouldn’t be viewed as an indication of any breach. Shares in iSelect are trading down 3.2 per cent at $1.36.
Best and worst performers The best performing sector is Energy gaining 192 points to 14,197. Shares in Oil Search Limited
(ASX:OSH) have risen 3.06 per cent and trading at $8.76. Shares in Worleyparsons Limited
(ASX:WOR) and Caltex Australia Limited
(ASX:CTX) are also stronger.
The worst performing sector is Real Estate Investment Trusts, falling 0.3 points to 1,010. Shares in Goodman Group
(ASX:GMG) have fallen 1.05 per cent, trading at $4.72. Shares in Stockland Corporation Limited
(ASX:SGP) and Mirvac Group
(ASX:MGR) are also lower.
Gold and the dollar
Gold is trading at $US1,329 an ounce and the Australian dollar is buying $US0.9341.
