The Australian share market defied flat expectations to open higher and is 0.5 per cent stronger at midday, driven by gains in energy stocks, the big banks and the miners. In local economic data, home loan approvals matched expectations in October, while NAB’s business survey says conditions are still significantly higher than confidence.
The S&P/ASX 200 index is 22 points up at 5,166. On the futures market the SPI is 24 points higher.
Economic news
The Australian Bureau of Statistics says demand for home loans rose in line with expectations in October. The number of home loans granted in October rose one per cent to 52,305. Economists had tipped a one per cent rise. Total housing finance by value rose 4.1 per cent to $26.48 billion.
National Australia Bank’s November survey of business confidence and conditions says business conditions lifted slightly in the month, from minus 4 to minus 3, with interest sensitive sectors gaining some ground. Business confidence edged back to positive five points in November, from positive six points in October and positive 12 points in September. NAB chief economist Alan Oster said the slight dip in November is suggests that firms are continuing to reassess their lofty election-related expectations given continuing sub-par business outcomes.
Company news
Senex Energy Limited
(ASX:SXY) has generated more than 450 oil and gas leads after a year-long prospectively work across its majority held permits in South Australia’s Cooper-Eromanga Basin. Managing Director Ian Davies says the program highlights the enormous growth potential of the Basin, driven by 3D seismic and other new technologies that have helped to revolutionise the North American oil and gas industry. Shares in Senex Energy are trading up 1.61 per cent at $0.79.
DEXUS Property Group
(ASX:DXS) has upgraded fiscal 2014 earnings guidance, driven by its on market security buy back earlier this year which has increased its funds from operations. The property developer is predicting 7 per cent growth , also boosted by the net impact of its investment in the Commonwealth Property Office Fund, in which it has a 14 per cent stake. Shares in Dexus are trading up 1.23 per cent at $1.03.
Best and worst performers The best performing sector is Energy gaining 63 points to 13,248. Shares in Senex Energy Limited
(ASX:SXY) have risen 1.61 per cent and trading at $0.79. Shares in Woodside Petroleum Limited
(ASX:WPL) and Horizon Oil Limited
(ASX:HZN) are also stronger.
The worst performing sector is Consumer Staples, falling 25 points to 9,606. Shares in Goodman Fielder Limited
(ASX:GFF) have fallen 5 per cent, trading at $0.62. Shares in Treasury Wine Estates Limited
(ASX:TWE) and Coca-Cola Amatil Limited
(ASX:CCL) are also lower.
IPOs Recall Holdings Limited
(ASX:REC) started trading today. The logistics company opened at $4.15 and is currently trading at $4.30.
Gold and the dollar
Gold is trading at $US1,239 an ounce and the Australian dollar is buying $US0.9087.
