The Australian share market is climbing at noon, up about half a per cent on strong offshore leads and a positive outlook from the RBA on strengthening local economic growth.
The S&P/ASX 200 index is 25 points higher at 5,156. On the futures market the SPI is 23 points up.
Economic news
The RBA has lifted its cconomic growth forecast for the calendar year to between 2.25 and 3.25 per cent, up from its 2 to 3 per cent forecast in the November. The central bank says growth is expected to pick up this year, however that is still a bit below trend. It says inflation is on track to stay within its 2 to 3 per cent target range over the next few years.
Meantime the Australian construction industry contracted in January according to AiG and HIA. The Performance of Construction index fell 2.6 points to 48.2 points in the month, after three straight months of growth. A read over 50 indicates the sector is growing, while a result under 50 shows it is shrinking.
Company news
Woodside Petroleum Limited
(ASX:WPL) has signed a non-binding memorandum of understanding with its joint venture partners for the acquisition of a stake in the Levathian gas project in Israel. Woodside says the MoU provides a framework for it to negotiate the purchase of a 25 per cent interest in two petroleum licences. The parties are working towards settling a termed agreement by March 27. Shares in Woodside are currently trading 0.37 per cent down at $37.48.
David Jones Limited
(ASX:DJS) has lodged a preliminary development submission to Sydney City Council in relation to the proposed development of its Market St, Sydney, site. CEO Paul Zahra says the company is currently reviewing the risks and rewards associated with all of the options available through its property portfolio. Shares in DJs are trading 0.17 per cent higher at $3.
Best and worst performers The best performing sector is energy gaining 222 points to 13,364. Shares in Aurora Oil & Gas Limited
(ASX:AUT) have risen 55.73 per cent and trading at $4.08. Shares in AWE Limited
(ASX:AWE) and Buru Energy Limited
(ASX:BRU) are also stronger.
The worst performing sector is health care, falling 88 points to 14,025. Shares in ResMed Inc
(ASX:RMD)have fallen 1.73 per cent, trading at $4.82. Shares in Mesoblast limited
(ASX:MSB) and Primary Health Care Limited
(ASX:PRY) are also lower.
Gold and the dollar
Gold is trading at $US1,258 an ounce.
The Australian dollar is buying 89.64 US cents.
