The Australian share market heeded gains on Wall Street to start the trading week slightly higher and is relatively flat at noon, although starting to respond to unexpectedly strong retail data from the ABS, which have also boosted the Aussie dollar to the day’s high. Among stocks, miners are leading the gains at this stage.
The S&P/ASX 200 index is 9 points up at 5,420. On the futures market the SPI is 14 points higher.
Economic news
The TD Securities-Melbourne Institute’s monthly inflation gauge has remained benign in October, edging up 0.1 per cent. The inflation gauge increased by 2.1 per cent in the 12 months to October, near the bottom of the RBA’s 2-3 per cent target band. With inflation expected to remain benign to the end of the year, the private survey says the door remains open for a further rate cut.
The Australian Bureau of Statistics has released retail spending figures for September and they’ve beaten expectations. Australian retail spending increased by 0.8 per cent in the month and 0.7 per cent in the September quarter. Economists had tipped a 0.4 per cent monthly and 0.2 per cent quarterly rise.
Company news
Billabong International Limited
(ASX:BBG) has entered into an agreement with leading fashion retailer YM Inc. to sell its Canadian retail chain for between $9.1 and $11.2 million. The surfwear retailer says it has also received a $222.4 million tranche of its loan from Centerbridge Partners and Oaktree Capital, which will fully repay its loan from Altamont Capital Partners. Shares in Billabong are trading down 0.36 per cent at $0.40.
Investa Office Fund
(ASX:IOF) will sell its long running investment in the Dutch Office Fund (DOF) to a consortium of existing DOF investors for $224.7 million, part of its strategy to become 100 per cent Australian focused. IOF Fund Manager Toby Phelps says the plan is to reinvest the sale proceeds into high quality Australian CBD assets and further leverage the capability and experience of Investa in the Australian office sector. Shares in IOF are trading down 1.27 per cent at $3.11.
Best and worst performers The best performing sector is Materials gaining 32 points to 10,006. Shares in Atlas Iron Limited
(ASX:AGO) have risen 4.43 per cent and are trading at $1.06. Shares in Arrium Limited
(ASX:ARI) and CuDeco Limited
(ASX:CDU) are also stronger.
The worst performing sector is Consumer Staples, falling 46 points to 10,117. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have fallen 4.34 per cent, trading at $12.33. Shares in Goodman Fielder Limited
(ASX:GFF) and Graincorp Limited
(ASX:GNC) are also lower.
Gold and the dollar
Gold is trading at $US1,315 an ounce and the Australian dollar is buying $US0.9487, slightly off the day’s high.
