Heeding mixed offshore leads and the Australian share market slipped at open and is 0.3 per cent lower at midday, despite an exceedingly healthy full year profit from ANZ which sees the financials sector propping things up slightly at this stage. RBA Governor Glenn Stevens has sent the Aussie dollar sharply lower after telling a conference that the high levels of the exchange rate are not supported by Australia’s level of costs and productivity, and that the local currency was likely to be materially lower in the future.
The S&P/ASX 200 index is 22 points down at 5,420. On the futures market the SPI is 22 points lower.
Company news
Australia and New Zealand Banking Group
(ASX:ANZ) shares have hit an all time high in early trade, with investors cheering its bumper full year cash profit of $6.49 billion. CEO Mike Smith says the strong domestic performance resulted from a distinctive long term strategy focused on domestic franchise growth and targeted expansion into Asia. Mr Smith also enthused that there is more gas in the tank for the lender, owing to the long term nature of what it is building. Shares in ANZ are trading just below that all time high, yet still up 1.94 per cent at $33.88.
Food processing company Select Harvests Limited
(ASX:SHV) says favourable growing and harvest conditions and improved management practises have led to a significant improvement in its 2013 almond crop volume. The company is projecting a 12,500 tonne crop, to be realised at increased per kilo pricing due to a supply constraints caused by drought in California, which grows 80 per cent of the world’s almonds. Shares in Select Harvests are trading up 7.96 per cent at $4.34.
Best and worst performers The best performing sector is Financials excluding real estate investment trusts gaining 16 points to 7,220. Shares in Australia and New Zealand Banking Group
(ASX:ANZ) have risen 1.94 per cent and trading at $33.88. Shares in National Australia Bank Limited
(ASX:NAB) and Westpac Banking Corp
(ASX:WBC) are also stronger.
The worst performing sector is Energy, falling 165 points to 13,927. Shares in Aquila Resources Limited
(ASX:AQA) have fallen 4.26 per cent, trading at $2.25. Shares in Whitehaven Coal Limited
(ASX:WHC) and Horizon Oil Limited
(ASX:HZN) are also lower.
Gold and the dollar
Gold is trading at $US1,354 an ounce and the Australian dollar is buying $US0.9524.
