As yesterday’s buoyant optimism surrounding a US debt deal dissipated and sent Wall Street down, the Australian share market gave up just under half a per cent at open, however renewed hopes have seen local stocks bounce back to be 0.1 per cent up at noon. The Aussie dollar has mirrored the sentiment, bouncing from a session low in early trade to a high of $US0.9541 as speculation mounts that a deal just might be struck today. Among the sectors, healthcare stocks are leading gains at this stage.
The S&P/ASX 200 index is 4 points up at 5,264. On the futures market the SPI is 5 points higher.
Economic news
The Westpac-Melbourne Institute leading index of economic activity fell slightly in August however remained above trend. The index, indicating the likely pace of economic activity three to nine months into the future, was 3.2 per cent in August, compared with 4.1 per cent in July, managing to remain above its long term trend of 2.9 per cent. Westpac chief economist Bill Evans said the economy has experienced a significant loss of momentum since the start of the year.
Company news
Blood products giant CSL Limited
(ASX:CSL) says a one-off US settlement charge of $US39 million will cut growth in its net profit from 10 to 7 per cent. CSL has also launched an on-market share buy-back worth up to $950 million, to be directed towards ongoing capital management.
Shares in CSL are trading up 1.39 per cent at $66.29.
Warrnambool Cheese & Butter Factory Co.
(ASX:WCB) has encouraged shareholders to reject a takeover proposal from rival Bega Cheese, stating it is inferior to that received from Canadian dairy giant Saputo. The WCB board indicated a recent independent audit found Bega's offer was neither fair nor reasonable to WCB shareholders, and that the Saputo offer is superior. Shares in Warrnambool Cheese & Butter Factory are trading down 0.14 per cent at $7.21.
Best and worst performers The best performing sector is Healthcare gaining 80 points to 13,768. Shares in Sigma Pharmaceutical Limited
(ASX:SIP) have risen 2.73 per cent and trading at $0.57. Shares in CSL Limited
(ASX:CSL) and Acrux Limited
(ASX:ACR) are also stronger.
The worst performing sector is Energy, falling 48 points to 13,968. Shares in Linc Energy Limited
(ASX:LNC) have fallen 3.93 per cent, trading at $1.34. Shares in Paladin Energy Limited
(ASX:PDN) and Karoon Gas Australia Limited
(ASX:KAR) are also lower.
Gold and the dollar
Gold is trading at $US1,279 an ounce and the Australian dollar is just below that early high, currently buying $US0.9534.
