The Australian share market looks set to open higher after a positive lead from US markets.
US economic news
Federal Reserve chairman Janet Yellen says the recent cold weather in the US has dampened spending and pointed to a weaker than expected economic recovery.
The Commerce Department also posted a lower than expected drop in durable goods orders for January down 1 per cent.
Global Markets
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 74 points to close at 16,273, the S&P 500 ended at a record high, up 9 points to close at 1,854 and the NASDAQ gained 27 points to close at 4,319.
European markets closed mixed, London’s FTSE rose 11 points, Paris shed half a point and Frankfurt dipped 73 points.
Asian markets also closed mixed, Tokyo’s Nikkei dropped 48 points, Hong Kong’s Hang Seng added 391 points, and China’s Shanghai Composite added 6 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 26 points down to finish at 5,411. On the futures market the SPI is 24 points higher.
Currencies
The Australian Dollar at 8.30AM was buying 89.66 US cents, 53.74 Pence Sterling, 91.56 Yen and 65.4 Euro cents.
Economic news out today
Due out today from the Reserve Bank of Australia housing credit figures January and the ANZ Bank business confidence report.
Company News
Select Harvests Limited
(ASX:SHV) has announced a 118 per cent rise in net profit after tax of $18.4 million compared with an underlying profit of $8.4 for the half year ending December 31, 2013. The company also showed a strong operating cash flow with an increase of 103 per cent on the same time last year.
Performance in both the Almond and Food division showed considerable improvement and the company is building a strong platform for growth. Severe drought in the US also added to the company’s positive outlook.
The company is offering a dividend of 11 cents per share fully franked – up 267 per cent.
Shares in Select Harvest added 1.37 per cent yesterday at $6.64
The share price of Rutila Resources Ltd
(ASX:RTA) has shot up after the iron ore venture and its partner Todd Minerals announced an alliance agreement with Flinders Mines to provide flinders with a transportation and port handing service.
As part of the deal Rutila would build a port half way between Rio Tinto’s port at Cape Lambert and Port Hedland. The port would then be connected to Flinder’s iron ore project by a 200 kilometre railway. The port would also use barges to ferry the iron ore offshore to waiting ships therefore reducing the need for dredging or high dollar construction costs for facilities. Flinders Mines is in a trading halt as the company conducts a capital raising.
Shares in Rutila surged 30 per cent yesterday at to close at 26 cents.
Ex-dividends
Commodities
Gold is up $3.80 to $US1,332 an ounce for the April contract on Comex. Silver is up by 6 cents to $21.31 for March. Copper is down by 1 cent at $3.24 a pound. Oil is down by 19 cents at $102.40 US a barrel for April light crude in New York.
