After a booking a weekly loss the Australian share market has bounced 0.7 per cent higher into the new week. Despite a disappointing US jobs report local stocks have followed Wall Street’s jump in the absence of any major domestic data.
Across the sectors most of the majors are stronger, led by the miners on the back of higher commodity prices. The gold sub-index has gained 4 per cent and lifted the local gold miners such as Newcrest Mining Limited
(ASX:NCM) almost five per cent higher.
Figures
The S&P/ASX 200 index has advanced 37.9 points to 5,204 at noon. On the futures market the SPI is 30 points higher.
Company news
Western Areas Limited
(ASX:WSA) has boosted its annual production guidance following improved productivity and output across it operations. The nickel miner now expects to produce 27,000 tonnes, up from an earlier forecast of between 25,000 tonnes and 26,000 tonnes. The company has also forecast it will report improved interim earnings and profit when it releases its financial report next week. Shares in Western Areas have jumped 5.27 per cent and are trading at $2.90 at noon.
Insurance comparison website iSelect Limited
(ASX:ISU) has inked a new two-year distribution agreement with its main supplier of car insurance, Auto & General Services. iSelect says the agreement is geared to improving its conversion metrics, expanding the number of providers on the panel and boosting the breadth of products it offers. The new commission rates under the agreement are not expected to impact the company’s first half results but will impact second half revenue and earnings by between $1 million and $2 million. Shares in iSelect have dropped 4.44 per cent and are trading at $1.29 at noon.
Best and worst performers
The majority of sectors have moved higher: The best performing sector is materials gaining 106 points to 10,124. Shares in Evolution
(ASX:EVN) have risen 8.51 per cent and trading at $0.77. Shares in Resolute Mining Limited
(ASX:RSG) and Western Areas Limited
(ASX:WSA) are also stronger.
One of the few sectors in the red is consumer staples, falling 30 points to 9,804. Shares in Metcash Limited
(ASX:MTS) have eased 0.66 per cent, trading at $2.99. Shares in Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) are also lower.
Gold and the dollar
The price of gold rose more than $US4.00 overnight has since firmed to $US1,266 an ounce.
The Australian dollar is steady from this morning at $US0.8953 after last week posting its best weekly performance since October 2013.
