Following mixed leads overnight, the Australian share market opened higher and is 0.28 per cent up at noon. Reporting season is still in full swing with strong results reported from online job market Seek and improved retail sales from Wesfarmers.
The S&P/ASX 200 index is 15.6 points up at 5,408. On the futures market the SPI is 12 points higher.
Economic news
The Westpac Melbourne Institute Leading Index, which indicates the likely pace of economic growth three to nine months into the future, fell from 1.09% in December to 0.46% in January. The negative result was mainly driven by pessimism in consumer sentiment and employment expectations.
Company news Toll Holdings Limited
(ASX:TOL) has reported a drop in first half net profit of 10 per cent. The freight forwarders recorded a net profit of $176 million for H1 of the 2014 financial year, down from $196 million for the previous corresponding period. A revenue drop of 0.5 of a percent was due to competitive pressure according to CEO Brian Kruger, with the resources slowdown effecting results. The company says despite a flat outlook for volume in H2 it is positioned well to benefit from any pick-up in national economic activity. Shares in Toll Holdings Limited
(ASX:TOL) have lost 3.37 per cent in morning trade to $5.44.
Suncorp Group Limited
(ASX:SUN) has reported a 40 per cent rise in dividend despite a 4.5 per cent drop in net profit. The Queensland based bank booked a net profit of $548 million dollars in H1 of Fiscal 2014, down from $574 for the same period last year. Revenue for the company was flat for the period and the life insurance arm suffered numerous write downs due to a high lapse rate. Net profit in the banking arm improved to $105 million, up from $4 million for H1 of Fiscal 2013. Shares in Suncorp have lost 2.38 per cent in morning trade to $12.30.
The Best and Worst Performers The best performing sector is Industrials gaining 41 points to 3,991. Shares in SEEK Limited
(ASX:SEK) have risen 14.85 per cent and trading at $15.31. Shares in NRW Holdings Limited
(ASX:NWH) and Brambles Limited
(ASX:BXB) are also stronger.
The worst performing sector is Consumer Staples, falling 30 points to 9,994. Shares in Treasury Wine Estates Limited
(ASX:TWE)have fallen 1.45 per cent, trading at $3.75. Shares in Wesfarmers Limited
(ASX:WES)and Coca-Cola Amatil Limited
(ASX:CCL) are also lower.
Gold and the Dollar
Gold is trading at $US1,321 an ounce. The Australian dollar is buying $US0.9011.
