The Australian share market opened slightly higher and is trading steady at six-year highs. Despite Wall Street’s upbeat earnings reports and the S&P 500 hitting another record high, local stocks have paused from the rally. Across the sectors Apple Inc’s (NASDAQ:AAPL) buoyant result has ripped over to the local tech sub sector while a lower gold price is weighing on the gold sub sector. Resources are also suffering with the major miners trading lower but the Big Four Banks on positive territory.
Figures
The S&P/ASX 200 index has added 7 points to 5,584. On the futures market the SPI is 18 points higher.
Company news
Insurance Australia Group Limited
(ASX:IAG) has hiked its annual profit margin expectations for the 2014 financial year. The insurer’s anticipated result has been aided by benign weather and fewer claims. IAG now expects to report an insurance margin between 18 and 18.3 per cent in fiscal 2014. The guidance is up from a prior forecast of between 14.5 and 16.5 per cent. Full fiscal 2014 results and an outlook on the year ahead are due on August 19. Shares in Insurance Australia Group have risen 2.48 per cent to $6.19 at noon.
After soaring about 60 per cent this week shares in Quickflix Limited
(ASX:QFX) have continued to rise after responding to media speculation US giant Netflix is eyeing the company. Reports claim the Australian online movie rental subscription business has held serious talks with Netflix in regards to securing a strategic stake as it gears up to enter the local market. Quickflix says it maintains regular dialogue with local and international participants but has no material information to disclose. The reports come just days after Quickflix confirmed Nine Entertainment Company
(ASX:NEC) has acquired an 8 per cent stake in the company. Shares in Quickflix have advanced 23.08 per cent to $0.02 at noon.
Best and worst performers
The best performing sector is telco services, gaining 0.5 per cent to 1,903. Shares in Telecom Corp of New Zealand
(ASX:TEL) have risen 1.89 per cent and trading at $2.70. Shares in Telstra Corporation Limited
(ASX:TLS) and Singapore Telecommunications Limited
(ASX:SGT) are also stronger.
The worst performing sector is materials, falling 0.3 per cent to 10,406. Shares in Newcrest Mining Limited
(ASX:NCM) have fallen 4 per cent, trading at $11.03. Shares in Northern Star Resources Limited
(ASX:NST) and Sandfire Resources NL
(ASX:SFR) are also lower.
Gold and the dollar
Gold is trading at $US1,299 an ounce.
The Australian dollar has continued to rise and is buying $US0.9462.
