Ahead of the RBA decision on interest rates, the Australian share market has shaken off mildly negative leads to open higher and is 0.23 per cent up at noon.
The S&P/ASX 200 index has lifted 15 points to 5,411.
On the futures market the SPI is 20 points higher.
Economic news
June house prices have recovered some of the losses experienced in May. The RP Data – Rismark index shows home prices across capital cities rose 1.4 per cent recovering from a 1.9 per cent fall in May. Despite the rebound home prices are still 0.2 per cent lower for the quarter signalling the possibility that the biggest gains are now past.
And consumer confidence is still struggling to recover pre-budget levels. The ANZ-Roy Morgan weekly consumer confidence index declined 0.3 per cent last week. The index shows confidence has bounced about 6 per cent higher in the past month but still remains 9 per cent lower than April. ANZ now forecasts household consumption growth to show improvement next year instead of the second half of this year.
Company news
Liquefied Natural Gas Limited
(ASX:LNG) has announced that Kinder Morgan Louisiana Pipeline has filed an application to transport gas to LNG’s wholly owned Magnolia LNG project in the Port of Lake Charles, Louisiana. This puts LNG another step closer towards achieving financial close on the project in mid 2015. The news follows yesterday’s announcement that the natural gas plant developer has received a three month extension of its lease of the Fisherman’s Landing Project in Gladstone Queensland. The company is committed to securing adequate gas supply for the first LNG gas train at Fisherman’s Landing that will produce 1.5 million tonnes per annum. Liquefied Natural Gas has seen a big leap in its share price as it progresses with the US Magnolia project. CEO Maurice Brand says Magnolia has the potential to be among the first five US gas export ventures to start shipments, subject to regulatory approval.
Shares in LNG were trading below 50 cents as recently as March and have today added another 6.54 per cent to $2.28.
Ansell Limited
(ASX:ANN) has announced a business restructure to allow for the integration of the $652 million acquisition of a rubber glove maker and announced a number of write downs. In an announcement after the market closed on Monday, Ansell said the re-organisation would lead to $133 million in write downs of earnings before interest and tax and said earnings per share were now expected to be significantly lower. The restructure would include dividing the Melbourne and US-based business into four business units: medical, single use, industrial and condoms. The company will close two factories, one in Malaysia and one in the US and cut about 300 staff which would see annual savings of about $23 million by 2016.
Shares in Ansell are trading 2.67 per cent lower at $19.30.
Best and worst performers
The best performing sector is industrials gaining just over one per cent to 4,070. Shares in Transurban have risen 2.57 per cent and are trading at $7.58. Shares in Transfield Services and Downer EDI are also stronger.
The worst performing sector is telco services falling 0.09 per cent to 1,812. Shares in TPG Telecom have fallen 0.73 per cent, trading at $5.47. Shares in Singapore Telecommunications and Telstra are also lower.
Gold and the dollar
Gold is trading at $US1,327 an ounce.
The Australian dollar is buying 94.28 US cents.
