Negative leads pushed the Australian share market down at open but the benchmark has trimmed losses after better than expected Australian Bureau of Statistics (ABS) economic data. Stocks got off to a soft start after global markets continued to fret about tensions between Ukraine and Russia overnight.
Elsewhere in the world China’s government has retained its economic growth target at 7.5 per cent this year, making the announcement at an annual meeting in Beijing today. Across the local board Australian sectors are trading mixed with the gold sub-index climbing 1 per cent to the top of the ladder.
Figures
The S&P/ASX 200 index is trading 8.4 points lower to 5,438 at noon. On the futures market the SPI is 17 points lower.
Economic news
Australian retail sales jumped more than expected at the beginning of this year. Official figures from the Australian Bureau of Statistics shows retail sales gained 1.2 per cent to $22.925 billion in January. The rise extended a gain of 0.5 per cent in December as Christmas shoppers came out in force.
Australia's trade surplus has exceeded expectations as it rose to a 29-month high at the beginning of this year. The ABS reports Australia’s trade surplus came in at $1.43 billion in January with exports lifting 4 per cent and imports adding 1 per cent over the month. The surplus was the biggest since August 2011 when it hit $2.1 billion.
Company news
Bank of Queensland Limited
(ASX:BOQ) says its ability to compete has improved after its credit rating was again upgraded by Moody's Investors Service. The ratings agency has lifted the Brisbane based regional lender’s long term credit rating to A3 from Baa1. Moody’s says the upgrade reflects the bank’s improved credit risk profile and balance sheet strength. Shares in Bank of Queensland have lifted 1.51 per cent and are trading at $12.46 at noon.
Westpac Banking Corporation
(ASX:WBC) has announced plans to raise about $500 million from wholesale investors. The bank will offer subordinated notes with the margin to be determined by a bookbuild process. Westpac says the notes are not being offered to retail investors and are not issued under a prospectus. Shares in Westpac have dipped 0.2 per cent and are trading at $34.16 at noon.
Best and worst performers
The best performing sector is industrials gaining 16 points to 4,109. Shares in Leighton Holdings Limited
(ASX:LEI) have risen 3.46 per cent and trading at $18.84. Shares in SEEK Limited
(ASX:SEK) and Seven Group Holdings Limited
(ASX:SVW) are also stronger.
The worst performing sector is health care, falling 142 points to 14,708. Shares in Acrux Limited
(ASX:ACR) have dropped 7.89 per cent, trading at $1.93. Shares in Ramsay Health Care Limited
(ASX:RHC) and ResMed Inc
(ASX:RMD) are also lower.
Gold and the dollar
Gold has firmed to $US1,338 an ounce.
The Australian dollar has risen back above $US0.90 to $US0.9023.
