After a strong opening on positive offshore leads the Australian share market hit a fresh five year high in early trade, breaking through the 5,400 barrier with investors banking on further stimulus measures from the US Federal Reserve. Local stocks have eased slightly to be 0.3 per cent up at noon, with Materials leading the way as the big miners post broad gains. The latest inflation data from the ABS has beaten expectations, sending the Aussie dollar to a four and a half month high.
The S&P/ASX 200 index is 12 points up at 5,385. On the futures market the SPI is 18 points higher.
Economic news
The Australian Bureau of Statistics has released the latest read on inflation with the third-quarter consumer price index. Inflation has strengthened in the September quarter, beating analyst expectations with a headline rise of 1.2 per cent. Underlying inflation- more closely watched by the Reserve Bank- rose 0.65 per cent in the quarter. Year on year, the headline read fell 2.2 per cent, while underlying inflation lifted 2.3 per cent.
Company news
Treasury Wine Estates Limited
(ASX:TWE) has maintained its full year earnings guidance however remains cautious of a challenging year ahead as well as the volatile Australian dollar. The wine maker expects to post pre tax earnings of between $230 and $250 million for the full year, even though earnings are set to be depleted by the above factors as well as slowing consumer demand in China and depletion of excess stock in the US. Shares in TWE are trading up 0.21 per cent at $4.74.
Legal services firm Shine Corporate Limited
(ASX:SHJ) has reaffirmed its forecast for strong earnings growth in the current financial year, tipping a 21.5 per cent increase in its net profit. Chairman Tony Bellas says key drivers of growth were national expansion through acquisitions, with the company diversifying operations into emerging practice areas such as professional negligence, environmental law, land owner rights and class actions. Shares in Shine Corporate are trading up 5.99 per cent at $1.77.
Best and worst performers The best performing sector is Materials gaining 148 points to 10,122. Shares in St. Barbara Limited
(ASX:SBM) have risen 12.11 per cent and trading at $0.53. Shares in Perseus Mining Limited
(ASX:PRU) and Sirius Resources N.L.
(ASX:SIR) are also stronger.
The worst performing sector is Healthcare, falling 90 points to 13,954. Shares in Sonic Healthcare Limited
(ASX:SHL) have fallen 1.99 per cent, trading at $15.51. Shares in Sigma Pharmaceutical Limited
(ASX:SIP) and Ansell Limited
(ASX:ANN) are also lower.
Gold and the dollar
Gold is trading at $US1,340 an ounce and the Australian dollar has eased slightly from that inflation high, it’s currently buying $US0.9742.
