Following strong leads from the US, the Australian share market opened higher today and is 0.29 per cent up at noon.
As optimism returned to the industrials sector and to the banks, the safe haven of commodities like gold took a beating, with the gold sub index in the red.
The S&P/ASX 200 index is 17 points up at 5,528. On the futures market the SPI is 12 points higher.
Economic news The Westpac Banking Corporation
(ASX:WBC) and the Melbourne Institute reported the leading indexes of economic activity for April with the rate falling to -1.16 per cent in last month from +0.03 per cent in March.
The HIA- Commonwealth Bank of Australia
(ASX:CBA) Affordability Report for the March quarter has reached its highest level in 12 years, it improved by 2.1 per cent in March on the back of low interest rates and solid earnings.
And the ABS has shown a lift in Construction work in the March quarter defying forecasts with an increase of 0.3 per cent. Construction work is 2.6 per cent higher from the previous period last year, seasonally adjusted.
Company news
Responding to media speculation Woolworths Limited
(ASX:WOW) has confirmed it is currently investigating property divestments. The supermarket giant says it is looking into options to divest a further part of its property portfolio but no decisions have been made as yet. Under consideration include the company’s property holdings in hotels and co-located retail liquor stores. Woolworths is mulling single property sales, portfolio property sales and the creation of separate vehicles to own the assets. Shares in Woolworths have slipped 0.58 per cent and are trading at $37.67.
Mirvac Group
(ASX:MGR) has bought a $144.2 million worth of future residential projects across Australia.
The real estate developer has purchased four projects across Sydney, Melbourne and Brisbane. Managing Director Sudan Lloyd-Hurwitz says the acquisitions will provide long term earnings benefits from fiscal 2016 onwards. The future residential projects are also expected to significantly restock Mirvac’s residential development pipeline. Shares in Mirvac have firmed 0.99 per cent and are trading at $1.79.
Best and worst performers The best performing sector is industrials gaining 24 points to 4,175. Shares in ALS Limited
(ASX:ALQ) have risen 8.42 per cent and trading at $8.63. Shares in Bradken Limited
(ASX:BKN) and SEEK Limited
(ASX:SEK) are also stronger.
The worst performing sector is consumer staples, falling 35 points to 10,280. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have fallen 0.78 per cent, trading at $9.58. Woolworths Limited
(ASX:WOW) and Bega Cheese Limited
(ASX:BGA) are also lower.
Gold and the dollar
Gold is trading at $US1,265 an ounce.
The Australian dollar is buying $US0.9259.
