Following strong leads from the US, the Australian share market has jumped on open and is 1.1 per cent up at noon.
Optimism on Wall street flowed from strong US car sales while positive Chinese manufacturing data has also added to the gains and helped push the Aussie dollar above the US$0.95c mark overnight and it now sits at US$0.9466.
The S&P/ASX 200 index is 56 points up at 5,432. On the futures market the SPI is 54 points higher.
Economic news
The Australian Bureau of Statistics today released figures on international trade in goods and services for May and the trade deficit has widened this month stretching 145 per cent to $1.9 billion, seasonally adjusted. Exports fell 5 per cent in the month while imports receded by 1 per cent.
Company news
Envestra Limited
(ASX:ENV) has lodged an application with the Australian Takeovers Panel in relation to a takeover bid by Cheung Kong Holdings.
The gas utilities company received the offer in early May at a value of $1.32 per share and which included a clause relating to the payment of a final dividend. The dispute raised with the Takeovers Panel is in response to Cheung Kongobjecting to an accelerated dividend payment. The panel has not yet decided whether to conduct proceedings. Shares in Envestra are trading flat at $1.36.
Cokal Limited
(ASX:CKA) has received approval for its BBM mine, haul road and Port in Kalimantan in Indonesia.
The coal developer was issued with an in-principal forestry permit from Indonesian authorities for its 60 per cent owned operation. The permit brings the company closer to the Borrow and Use of Forest Area permit which would allow construction to begin. Shares in Cokal are trading up 3.57 per cent at $0.14
Best and worst performers
All major sectors are up today. The best performing sector is consumer staples gaining 1.4 per cent to 9,854. Shares in Woolworths Limited
(ASX:WOW) have risen 1.9 per cent and trading at $35.74. Shares in Metcash Limited
(ASX:MTS) and Wesfarmers Limited
(ASX:WES) are also stronger.
The sector with the least gains is utilities, gaining 0.6 per cent to 5,931. Shares in Spark Infrastructure Group
(ASX:SKI) have fallen 0.27 per cent, trading at $1.84. Shares in Envestra Limited
(ASX:ENV) were flat and DUET Group
(ASX:DUE) were up.
Gold and the dollar
Gold is trading at $US1,325 an ounce.
The Australian dollar is buying $US0.9466
