Following mostly positive leads, and ahead of the RBA’s interest rate decision later today the Australian share market opened higher and is 0.17 per cent up at noon.
The S&P/ASX 200 index is 16 points stronger at 5,478. On the futures market the SPI is 8 points higher.
Economic news
The Dun and Bradstreet Business Expectations Survey has shown a positive outlook from the business sector despite expectation of across-the-board spending cuts in this month’s Federal Budget. The survey jumped 4.9 points to a 10 year high of 34.8 points for Q3 2014. Manufacturers were most upbeat with 58 per cent expecting an increase in activity next quarter. 44 per cent of businesses as a whole expect an increase in trade in the new financial year while just nine per cent have concerns of reduced activity.
Company news
Bendigo and Adelaide Bank Limited
(ASX:BEN) has successfully completed a $230 million capital raising to fund its $1.78 billion acquisition of Rural Finance Corporation of Victoria. Managing Director Mike Hirst says there was strong support and a high level of demand from both new and existing shareholders. Institutional shareholders were offered shares at $10.85 to be issued on 12th May and commencement of trading on the same day. Rural Finance Corporation is a strong strategic fit for Bendigo and Adelaide Bank. Shares in the company resumed trading today after being placed in a halt ahead of the capital raising. They are 1.98 per cent softer at $11.17.
And Sydney Airport Holdings Limited (ASX:SYD) has successfully raised $2.5 billion in refinancing across European bond and Australian bank markets. All existing bank debt was refinanced at lower margins and capital expenditure is funded into 2016. Sydney Airport has now secured enough funding to cover all remaining 2014 debt totalling $822 million well in advance of the fourth quarter due date. It’s the first time the airport has ventured into European bonds with about $1 billion dollars raised in the over-subscribed issuance. The remaining $1.5 billion was covered by Australian bank debt. Shares in Sydney Airport are trading down 0.11 per cent at $4.34.
Best and worst performers
The best performing sector is health gaining 141 points to 14,483. Shares in Acrux have risen 4.02 per cent to $1.03. Shares in Sirtex Medical and Ansell are also stronger.
The worst performing sector is real estate investment trusts, falling just less than a point to 1,049. Shares in Abacus Property Group have fallen 0.81 per cent, trading at $2.44. Shares in Stockland Corp and GPT Group are also lower.
Gold and the dollar
Gold is trading at $US1,309 an ounce.
The Australian dollar is buying 92.84 US cents.
