The Australian share market looks to be claiming back some lost territory at midday, as investors consider a raft of local economic data and a mix of corporate earnings reports.
While still in the red, shares have recovered from heavier losses at the open and are relatively flat at noon, down 0.16 per cent.
The S&P/ASX 200 index is 9 points down at 5,181. On the futures market the SPI is 13 points lower.
Economic news
Cheaper clothing and travel costs in January have helped take the edge off the unusually high inflation in December. The TD Securities-Melbourne Institute monthly Inflation Gauge increased by 0.1 per cent in January, following a rise of 0.7 per cent in December. In the 12 months to January, inflation was up 2.5 per cent compared with 2.7 per cent in December.
Building approvals dropped off in December, according to the Australian Bureau of Statistics. The number of buildings approved fell a seasonally adjusted 2.9 per cent to 16,141 in the month, which was a bigger fall than expected.
Meantime, AIG’s performance of manufacturing index stayed in contraction territory for the third straight month in January. The index declined 0.9 points in the month to 46.7 points from 47.6 points in December. Readings above 50 indicate expansion, while reading below signal contraction.
Company news
Rosenberg Worleyparsons Limited
(ASX:WOR) has been awarded a hook up and commissioning contract by Technip for work valued at $92 million. The work will contribute to the delivery of the Martin Linge platform operated by Total E&P Norge in the Norwegian North Sea. Shares in Worleyparsons are trading 1.22 per cent lower at $16.25.
JB Hi-Fi Limited
(ASX:JBH) shares have jumped following a bumper first half net profit of $90.3 million, up 10 per cent on the same period a year ago. The retailer says total sales lifted by close to 7 per cent to $1.94 billion. Shares in JB Hi-Fi are trading 1.5 per cent higher at noon at $18.20.
Best and worst performers The best performing sector is Energy gaining 50 points to 13,169. Shares in Drillsearch Energy Limited
(ASX:DLS) have risen 1.9 per cent and trading at $1.47. Shares in Senex Energy Limited
(ASX:SXY) and Karoon Gas Australia Limited
(ASX:KAR) are also stronger.
The worst performing sector is financials, falling 34 points to 6,623. Shares in Bank of Queensland Limited
(ASX:BOQ) have fallen 2.54 per cent, trading at $11.11. Shares in Challenger Limited
(ASX:CGF) and Henderson Group
(ASX:HGG) are also lower.
Gold and the dollar
Gold is trading at $US1,244 an ounce. The Australian dollar is buying 87.62 US cents.
