The SPI is pointing to a positive start to the week for the Australian share market. The local bourse looks to extend last week’s gains despite a soft finish on Wall Street on Friday.
On the home front reporting season will ramp up with more earnings results due over the week. Companies expected to report today include Newcrest Mining Limited
(ASX:NCM), Stockland Limited
(ASX:SGP) and Aurizon Holdings Limited
(ASX:AZJ), ahead of Australia’s largest company BHP Billion Limited
(ASX:BHP) reporting tomorrow.
On the economic calendar attention will be fixed on the Reserve Bank of Australia’s minutes tomorrow ahead of the US Federal Reserve’s minutes release on Wednesday.
Global markets
Wall Street rose more than 1 per cent over last week but closed mixed on Friday: The Dow Jones Industrial Average dipped 0.3 per cent to close at 16,663, the S&P 500 slipped 0.01 per cent to close at 1,955 but the Nasdaq firmed 0.3 per cent to close at 4,465.
European markets gained more than 1 per cent over the week but ended Friday mixed: London's FTSE 100 added 0.06 per cent, France's CAC 40 lost 0.4 per cent and Germany's DAX dropped 1.4 per cent.
Asian markets advanced over the week and extended gains on Friday: Japan’s Nikkei firmed 0.02 per cent, Hong Kong’s Hang Seng rose 0.6 per cent, and China’s Shanghai Composite jumped 0.9 per cent.
After a wobbly start to August the Australian share market climbed 2.4 per cent over last week: The S&P/ASX 200 gained 18 points on Friday, widening the weekly gain of 131 points to finish at 5,567. On the futures market the SPI is 10 points higher.
Currencies
The Australian dollar has eased from Friday’s close and at 7:30am was buying $US0.9321, 55.76 Pence Sterling, 95.42 Yen and 69.62 Euro cents.
Company news
Newcrest Mining Limited
(ASX:NCM) will release its annual financial accounts today. The results will come less than a month after Australia’s largest listed gold producer warned it will likely book write-downs of between $1.5 billion to $2.5 billion. At the time Newcrest blamed the potential write downs on its operating cost assumptions for its Lihir gold mine in Papua New Guinea and affirmed its commitment to cutting costs. Over the last 2014 financial year the miner increased its gold output by 14 per cent and lifted copper output by 7 per cent. Shares in Newcrest Mining dropped 0.71 per cent on Friday to end the week at $11.20 ahead of today’s results announcement.
Shares in iSelect Limited
(ASX:ISU) dropped on Friday following warnings its full year result is likely to be hit with a one-off charge between $11 million to $14 million. The online insurance comparison company has admitted it overestimated the impact of commissions from customers. However iSelect says the recent above-trend price rises on health insurance policies, which led it to revalue the trail book, represent a growth opportunity. iSelect will unveil its annual results on August 28. Shares in iSelect dropped 3.61 per cent on Friday following the announcement to end the week at $1.20.
Ex-dividends today
Argo Investments Limited
(ASX:ARG) paying a 14.5 cent fully franked dividend
Bradken Limited
(ASX:BKN) paying a 11 cent unfranked dividend
GUD Holdings
(ASX:GUD) paying a 18 cent fully franked dividend
K2 Asset Management Holdings Limited
(ASX:KAM) paying a 2 cent fully franked dividend
REA Group Limited
(ASX:REA) paying a 35 cent fully franked dividend
Ex-dividends tomorrow
Bendigo and Adelaide Bank Limited
(ASX:BEN) paying a 33 cent fully franked dividend
Commonwealth Bank of Australia
(ASX:CBA) paying fully franked dividend of $2.18
Commodities
After rising about $US3 over last week the price of gold has declined $US9.50 to $US1,314.50 an ounce for the December contract on Comex.
Silver has dipped $0.38 to $19.84 for September.
Copper has risen $0.01 to $3.10 a pound.
Oil has gained $0.13 to $US97.50 a barrel for September light crude in New York.
