Following positive offshore leads, the Australian share market opened higher and headed further into positive territory to be 0.7 per cent higher at midday as fears of conflict in Ukraine eased.
The S&P/ASX 200 index is 35 points up at 5,435. On the futures market the SPI is 29 points higher.
Economic news
The ABS GDP Figure has risen 2.7 per cent for the year to the December quarter after rising 0.7 of a per cent for both the September and December quarters. Net exports added 0.6 of a percentage point to the annual figure. Gross value added per hour worked, a measure of productivity, rose 0.6 per cent while the Terms of trade fell 0.9 per cent for the quarter.
The AIG Performance of Services index jumped into positive territory in February, the first increase in the index for two years. The figure was up 6.8 points to 55.1. A figure over fifty indicates an expansion in service sector activities. Strong growth in health, community services, finance and insurance helped drive the number.
Company news
The Australian Financial Review is reporting this morning that global resources giant Glencore Xstrata is considering making an offer for BHP Billiton Limited’s
(ASX:BHP) Nickel West operation, located near as existing Glencore nickel facility in Western Australia.
An increase in global supply and reduced demand from the Chinese economy for the metal have lead nickel prices lower recently after a decade-long boom. Glencore Xstrata CEO Ivan Glasenberg has indicated the Nickel West project’s proximity to Glencore’s Murrin Murrin project as well as its rail links to smelting facilities in Kalgoorlie and Kwinanna make it an attractive target. BHP has so far declined to comment. Shares in BHP are trading up 0.7 per cent at $37.62.
Copper miner Altona Mining Limited
(ASX:AOH) has reported a profit after tax of $4.35 million for the first half of Fiscal 2014, down 69 per cent on the same period a year ago despite a 40 per cent increase in sales revenue for the half.
The fall in copper prices throughout 2013 as well as an increase in costs in the second quarter impacted the results and the company engaged a gold hedging strategy to preserve revenue. Chairman Kevin Maloney also pointed out the company had reduced its gearing ratio from 22 to 12 per cent.
Altona has declined to pay or forecast a dividend. Shares in Altona Mining are trading up 2.94 per cent at $0.18.
To the best and worst performers: All major sectors are up at noon. The best performing sector is Consumer Discretionary gaining 24 points to 1,890. Shares in Fairfax Media Limited
(ASX:FXJ) have risen 5.29 per cent and trading at $0.99. Shares in Aristocrat Leisure Limited
(ASX:ALL) and Ten Network Holdings Limited
(ASX:TEN) are also stronger.
The sector with the smallest gains is Consumer Staples, gaining 0.2 points to 10,039. Shares in Treasury Wine Estates Limited
(ASX:TWE) have fallen 2.08 per cent, trading at $3.76. Shares in Goodman Fielder Limited
(ASX:GFF) and Woolworths Limited
(ASX:WOW) are also lower.
Gold and the dollar
Gold is trading at $US1,335 an ounce.
The Australian dollar is buying $US0.8980.
