The Australian share market has backpedalled in early trade following losses in global markets overnight, with local stocks trading 0.25 per cent lower at midday. Materials are leading the gains for the major sectors at this stage, while the Commonwealth bank has hit a new record high following a robust quarterly profit result.
The S&P/ASX 200 index is 14 points down at 5,418. On the futures market the SPI is 17 points lower.
Economic news
The Australian Bureau of Statistics says the nation’s trade deficit narrowed more than expected in September, coming in at $284 million. Economists had been expecting the deficit to narrow to $350 million in the month, down from August’s downwardly revised $693 million. The ABS says exports were flat in September, while imports fell by one per cent.
Company news
Commonwealth Bank of Australia
(ASX:CBA) shares hit another record in early trade, following the lender’s bumper first quarter profit of $2.1 billion. CBA shares surged to an all time high of $78.40 in early trade, as investors toasted what was described as a combination of solid revenue growth and cost discipline, as well as increased business activity spurred by historically low interest rates. Shares in CBA are trading up 1.52 per cent at $78.17.
Woolworths Limited
(ASX:WOW) and its US joint venture partner Lowe’s are reportedly sitting on a property portfolio valued at almost $1.1 billion across 100 active sites. The sites are being prepared for the national roll-out of the hardware chain Masters, with the retailer splurging on independent hardware businesses, taking the JV’s property books value up from $850 million last year. Shares in Woolworths are trading down 0.32 per cent at $34.49.
Best and worst performers The best performing sector is Materials gaining 7 points to 10,107. Shares in Lynas Corporation Limited
(ASX:LYC) have risen 6.43 per cent and trading at $0.37. Shares in OceanaGold Corporation
(ASX:OGC) and Mount Gibson Iron Limited
(ASX:MGX) are also stronger.
The worst performing sector is Healthcare, falling 122 points to 13,898. Shares in Mesoblast Limited
(ASX:MSB) have fallen 3.65 per cent, trading at $6.08. Shares in Sirtex Medical Limited
(ASX:SRX) and ResMed Inc. (CHESS)
(ASX:RMD) are also lower.
Gold and the dollar
Gold is trading at $US1,310.59 an ounce and the Australian dollar is buying $US0.9507.
