The Australian share market opened lower on negative leads from the US but has since responded to a lift in the iron ore overnight with the miners leading the market 0.64 per cent higher at noon. In a speech earlier this morning Reserve Bank assistant governor Guy DeBelle warned the Australian dollar remains over valued and cautioned that investor complacency regarding volatility in global markets could end a sell-off that, ‘could be relatively violent when it comes’.
The S&P/ASX 200 index is 36 points up at 5,192. On the futures market the SPI is 39 points higher.
The NAB Business Survey for September has shown a fall in both business conditions and confidence. While construction confidence was high and mining confidence was low, conditions across the board were at their lowest level in four months. NAB has now revised their forecast of GDP growth from 2.9 per cent to 2.8 per cent for the current financial year.
CuDeco Limited (ASX:CDU)
is reporting it has reached an agreement to deliver 20,000 tonnes of primary sulphide ore to Glencore’s Ernest Henry Mine copper processing plant which is located close to CuDeco’s Rocklands copper mine in Queensland. The shipment is part of a trial to evaluate the suitability of the ore for treatment and could result in a long term agreement for processing excess stockpiled supplies of copper. CuDeco also said it is finalising construction of its own Rocklands mineral processing facility in partnership with China state-owned Sinosteel Corporation and the plant should be up and running by the end of the year. Shares in CuDeco are trading 11.19 per cent stronger at $1.54.
Wotif.com Holdings Limited (ASX:WTF)
says that it has hit a slight delay its proposed acquisition by US travel group Expedia. The Foreign Investment Review Board has approved the scheme however the New Zealand Commerce Commission has delayed its announcement regarding the acquisition until Tuesday 21 October and Wotif is now requesting an adjournment for today’s hearing in the Supreme Court of Queensland. Shares were originally expected to be suspended from trading tomorrow Wotif expected to issue a new scheme of arrangement once the adjournment has been granted. Wotif trades ex-dividend today, shares are 7.6 per cent lower at $3.04.
Best and worst performers
The best performing sector is materials, gaining 2.2 per cent to 9,137 after a 5 per cent jump in the iron ore price overnight. Shares in BC Iron have risen 10.95 per cent and are trading at $1.57. Shares in Mount Gibson Iron and Atlas Iron are also stronger.
The worst performing sector is real estate investment trusts, falling 0.3 per cent to 1,075. Shares in Shopping Centres Australasia Property Group have fallen 0.9 per cent, trading at $1.66. Shares in Charter Hall and Stockland are also lower.
Gold and the dollar
Gold is trading at $US1,236 an ounce.
The Australian dollar is buying 87.39 US cents.