The Australian share market spiked 1 per cent at open after the US Federal Reserve unexpectedly refrained from scaling back its economic stimulus program.
Investors cheered the US central bank’s decision to maintain “highly accommodative monetary policy” and keep its $US85 billion monthly bond buying program in place for now.
Wall Street rose in response with the Dow and S&P hitting record highs and the price of gold jumping along with commodities which has in turn sparked a rally in our local mining and gold sectors.
The stimulus announcement also saw the US dollar drop against major currencies, pushing the Aussie dollar above 95 US cents to a three-month high.
Figures
The S&P/ASX 200 index has spiked 47 points to 5,285 at noon. On the futures market the SPI is 60 points stronger.
Company news
Energy giant Origin Energy Limited
(ASX:ORG) has inked a nine-year deal to buy natural gas from BHP Billiton Limited’s
(ASX:BHP) petroleum arm and ESSO Australia Resources from 2014.
Investment company Washington H. Soul Pattinson and Co. Limited
(ASX:SOL) has posted a 26 per cent fall in its full year net profit due to lower income from special dividends and impairment losses from its exposure to New Hope Corporation Limited
(ASX:NHC).
Civil and mining contractor NRW Holdings Limited
(ASX:NWH) has scored a $620 million contract which will see rail earthworks construction between Gina Rinehart's Roy Hill Mine site and Port Hedland in Western Australia.
Property developer Sunland Group Limited
(ASX:SDG) has expanded its footprint in Brisbane through a $20 million purchase of a riverfront site known as the Australian Broadcasting Corporation Site.
Best and worst performers
The best performing sector is materials soaring 216 points to 9,996. The gold miners are on top - Shares in Kingsgate Consolidated Limited
(ASX:KCN) have rallied 21.04 per cent and trading at $1.99. Shares in St. Barbara Limited
(ASX:SBM) and Alacer Gold Corporation
(ASX:AQG) are also stronger.
The worst performing sector is health care, easing 96 points to 13,645. Shares in Ansell Limited
(ASX:ANN) have fallen 2.48 per cent, trading at $20.86. Shares in ResMed Inc. (CHESS) and Cochlear Limited
(ASX:COH) are also lower.
Gold and the dollar
Gold is trading at $US1,365 an ounce.
The Australian dollar is buying 95.07 US cents.
