The Australian share market opened at its highest level since June 2008 this morning and has sustained gains following official inflation figures. A rise of 0.6 per cent on the local bourse follows optimism from strong US earnings reports as well as a flurry of deals in the pharmaceutical sector.
Figures
The S&P/ASX 200 index is 36 points up at 5515. On the futures market the SPI is 34 points higher.
Economic news
The latest inflation figures have come in below analysts’ expectations. The Australian Bureau of Statistics Consumer Price Index rose 0.6 per cent in the March quarter. The annual inflation rate of 2.9 per cent came in within the Reserve Bank’s target range.
Company news Shares in QRxPharma Limited
(ASX:QRX) have plummeted more than 75 per cent on news their Moxduo pain relief drug failed to receive approval from the US Food and Drug Administration.
The pharmaceutical company says it is disappointed but remains confident in the advantages of Moxduo and committed to bringing it to market. Shares in QRxPharma slid 77.86 per cent to $0.15 after the announcement.
Australand Property Group
(ASX:ALZ) has rejected a takeover bid from its major shareholder Stockland Limited
(ASX:STG).
The proposal implies an offer price of $4.20 per share, which is a discount to Australand’s closing price yesterday of $4.28. Stockland currently has a 19.9 per cent share in Australand after paying $3.78 for 115.2 shares in the company last month. Shares in Australand are trading steady at $4.28. Best and worst performers All major sectors are trading higher: The best performing sector is consumer discretionary gaining 22 points to 1,861. Shares in Echo Entertainment Group Limited
(ASX:EGP) have risen 3.65 per cent and trading at $2.84. Shares Domino's Pizza Enterprises Limited
(ASX:DMP) and Crown Resorts Limited
(ASX:CWN) are also stronger.
The sector with the smallest gains today is materials, gaining 18 points to 10,242. Shares in BC Iron Limited
(ASX:BCI) have fallen 2.35 per cent, trading at $4.58. Shares in Independence Group NL
(ASX:IGO) and Atlas Iron Limited
(ASX:AGO) are also lower.
Gold and the dollar
Gold is trading at $US1,286 an ounce.
The Australian dollar is buying $US0.9323.
