Despite mostly weaker Wall Street leads on US consumer confidence dropping and a looming debt ceiling deadline, the Australian share market opened the session stronger and is 0.8 per cent up at noon. Gains in consumer staples stocks leading the way so far, however all the major sectors are higher. David Jones shares have surged in early trade despite a slip in the retailers full year net profit.
The S&P/ASX 200 index is 39 points up at 5,273. On the futures market the SPI is 34 points higher.
Economic news
The Reserve Bank of Australia has encouraged the nation’s lenders to maintain loan standards as record-low interest rates spur households’ investment appetite. The Central bank sais in its financial stability review that-
"There are some signs that households are taking on more risk in their investment decisions, and it is important that banks do not respond to pressures to boost revenue by imprudently loosening their lending standards, or by making ill-considered moves into new markets or products."
Company news
Nufarm Limited
(ASX:NUF) says challenging seasonal conditions and a tough Australian market have affected its full year net profit, despite it lifting by 11.6 per cent to $81 million. The agricultural chemicals and seeds supplier says a poor result in Australia was partially offset by earnings growth in all other geographic regions as well as in its seeds technologies business. Shares in Nufarm are trading flat at $4.88.
ASX Limited
(ASX:ASX) chairman Rick Holliday-Smith says the stock exchange is set to shift its focus from domestic to international regulations in fiscal 2014, as changes in global regulation are particularly important for the markets derivatives business. Mr Holliday Smith says the ASX needs to observe local regulatory standards when dealing with European and American banks, while changes to international regulations also provide new business opportunities. Shares in ASX are trading up 0.22 per cent at $34.86.
Best and worst performers All major sectors are ahead at the moment, the best performer is Consumer Staples gaining 137 points to 10,031. Shares in Goodman Fielder Limited
(ASX:GFF) have risen 2.17 per cent and trading at $0.70. Shares in Wesfarmers Limited
(ASX:WES) and Woolworths Limited
(ASX:WOW) are also stronger.
The sector with the fewest gains is Real Estate Investment Trusts, adding 2 points to 1,024. Shares in Goodman Group
(ASX:GMG) have fallen 1.41 per cent, trading at $4.88. Shares in DEXUS Property Group
(ASX:DXS) and Charter Hall Group
(ASX:CHC) are also lower.
Gold and the dollar
Gold is trading at $US1,324 an ounce and the Australian dollar is buying $US0.9395.
