Midday: ASX climbs on global gains

Market Reports


Following strong sentiment in global markets ahead of the weekend, the Australian share market has jumped on open and is 1.08 per cent up at noon. In its long awaited prospectus released this morning, Medibank Private has revealed it will sell up to 2.75 billion shares at between $1.55 to $2.00 to raise between $4.3 billion to $5.5 billion. 
 
The S&P/ASX 200 index is 57 points up at 5,329. On the futures market the SPI is 72 points higher. 
 
Company news
 
Ausdrill Limited (ASX:ASL) has downgraded its profit guidance for the 2015 financial year. After a challenging first quarter, the mining services company now expects to report earnings of between $150 million and $160 million on revenue of $840 million. This compares to earnings of $174 million on revenue of $823 million for the 2014 financial year. The weaker outlook is due to challenging market conditions including lower gold and iron ore pricing and an $8 million bad debt provision as a result of Western Desert Resources going into administration. Delays in work for the rig fleet and adverse weather conditions in West Africa have also hampered profits. Managing director Ron Sayers says the company remains in a stable financial position and is committed to achieving the best possible returns for shareholders. Ausdrill emerged from a trading halt to slip 12.64 per cent to $0.76. 
 
Sydney Airport Holdings Limited (ASX:SYD) has reported a 0.9 per cent increase in September traffic compared to the same period last year. Domestic passengers were up 2 per cent for the month with a 1.2 per cent dip in international passengers however international traffic is up 3 per cent for the year to date with strong load factors driving capacity expansion. Sydney Airport also says Qantas will increase it Sydney-Santiago service by 38,000 seats annually and an upgrade in its Sydney-Dallas service will result in a 10 per cent increase in capacity. Cebu Pacific Air will also lift services on its Sydney-Manila route by 227,000 seats annually. Shares in Sydney Airport have gained 0.24 per cent to $4.23. 
 
Best and worst performers

All sectors have rising in morning trade, the best performing sector is consumer discretionary, gaining 1.5 per cent to 1,755. Shares in Ten Network have risen 6.1 per cent and trading at $0.22. Shares in SkyCity Entertainment Group and Ardent Leisure are also stronger. 
 
The sector with the least gains is consumer staples, adding 0.8 per cent to 9,609 Shares in Asaleo Care are flat, trading at $1.99. Shares in Graincorp and Woolworths are slightly higher.  
 
Gold and the dollar

Gold is trading at $US1,236 an ounce.
The Australian dollar is buying 87.71 US cents. 

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