Following firmly positive leads from overseas markets, the Australian share market opened higher but has since retreated to trade 0.05 per cent lower at noon.
The Aussie dollar enjoyed a spike after the release of the RBA minutes which agreed ‘the exchange rate was high by historical standards’ given the decline in commodity prices and was therefore offering ‘less assistance in achieving balanced growth of the economy’.
The S&P/ASX 200 index is 2 points lower at 5,509. On the futures market the SPI is 7 points down.
Company news
Whitehaven Coal Limited
(ASX:WHC) has reported record full year coal production at its mines at Narrabri, Tarrawonga and Werris Creek. Total coal sales lifted 22 per cent on the previous year whilst production of saleable coal was up by 26 per cent. Whitehaven also said it is on track for its Maules Creek project to be delivering coal by March 2015. The construction of the mine site is now 50 per cent complete with rail line construction slightly ahead of schedule. The long awaited Maules Creek project is currently the largest coal mine under construction in Australia. Whitehaven also says it has opened an office in Tokyo to engage the Japanese market.
Shares in Whitehaven Coal
(ASX:WHC) have jumped 4.41 per cent to $1.54.
Metal explorer Cassini Resources Limited (ASX:CZI) says its recently acquired West Musgrave Project is showing promising signs of delivering high grade copper and nickel. The Nebo & Babel deposits are showing a 20 km long mineralised corridor but the Succoth prospect has now taken priority. The sparsely drilled area about 13 km east of Nebo-Babel is showing high grade copper zones close to the surface. This means there is potential to develop an open pit mine which could assist in the planned development of the high-grade resources at Nebo-Babel. Cassini acquired 100 per cent of the undeveloped West Musgrave project from BHP in April. Shares in Cassini have been charging higher ever since and have today lifted a further 7.14 per cent to $0.23.
Best and worst performers
The best performing sector is telco services, gaining 0.4 per cent to 1,875. Shares in TPG Telecom have risen 0.72 per cent and trading at $5.62. Shares in Singapore Telecom and Telstra are also stronger.
The worst performing sector is industrial, falling 0.4 per cent to 4,115. Shares in NRW Holdings have fallen 3.38 per cent, trading at $1.00. Shares in Bradken and Monadelphous Group are also lower.
Gold and the dollar
Gold is trading at $US1,308 an ounce.
The Australian dollar is buying 93.96 US cents.
