With a mixed set of leads from the US and Europe the Australian share market managed to open higher and pushed 0.6 per cent up at noon. The US Federal Reserve’s comments overnight maintained its doveish sentiment, however it was made clear that the bank will respond to improvements in the labour market with higher interest rates should the need arise sooner than anticipated. Earnings announcements continued today with Mirvac and ASX both boosting profits.
The S&P/ASX 200 index is 28 points up at 5,663. On the futures market the SPI is 21 points higher.
Company news
AMP Limited
(ASX:AMP) has seen net profit for the first half of this year slip by 3 per cent on last year. Shares in the wealth management company are trading more than 3.5 per cent up at noon with the market clearly impressed by underlying profit pushing up 16 per cent to $510 million. CEO Craig Meller explained the company’s strategy of becoming a leaner, more efficient and increasingly customer driven organisation. An interim dividend of $0.125 has been declared. Shares in AMP are trading up 3.8 per cent at $5.73.
Tatts Group Limited
(ASX:TTS) has seen its share price slip on the news of a lower full year profit result. The gambling company’s net profit was down 19 per cent to $200.4 million, coming in below expectations. The company says the imposition of a $42.6 million health benefit levy was a direct driver of the profit slide. Shares in Tatts are trading down 5.39 per cent at $3.43
Best and worst performers The best performing sector is energy, gaining 1.7 per cent to 15,025. Shares in Origin Energy Limited
(ASX:ORG) have risen 4.79 per cent and trading at $14.87. Shares in Whitehaven Coal Limited
(ASX:WHC) and Worleyparsons Limited
(ASX:WOR) are also stronger.
The worst performing sector is consumer staples, falling 0.9 per cent to 10,336. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have fallen 3.46 per cent, trading at $9.21. Shares in Wesfarmers Limited
(ASX:WES) and Treasury Wine Estates Limited
(ASX:TWE) are also lower.
Gold and the dollar
Gold is trading at $US1,290 an ounce.
The Australian dollar is buying $US0.9246
