Following a mix of leads that came in the wake of the US Federal Reserve’s announcement that it will end its bond buying program, the Australian share market opened higher.
The SPI was pointing to a weak start but the local bourse defied a selloff on Wall Street and is up, 0.4 per cent at noon.
The S&P/ASX 200 index is 24 points up at 5,472. On the futures market the SPI is 24 points higher.
Economic news
The ABS has reported lower international trade price indexes with import prices down 0.8 per cent for the September quarter and export prices down 3.9 per cent.
Also, the Housing Industry Association has released new home sales figures for September reporting a flat result for the month despite multi unit sales jumping 11 per cent.
Company news
Wesfarmers Limited
(ASX:WES) supermarket arm, Coles, has reported a 4 per cent increase in retail sales in the first quarter. Managing director Richard Goyder says the gains were led by a 5.8 per cent jump in food and liquor sales while Bunnings reported sales growth of 11 per cent. The company reported slippage with sales by Target down 4.6 per cent and Coles Express sales dropping 2.3 per cent. The company says increases in the tobacco excise and fresh produce costs were balanced by an easing of food and liquor price deflation. Shares in Wesfarmers are trading up 1.18 per cent at $43.86
Shares in Coca-Cola Amatil Limited
(ASX:CCL) have jumped on news The Coca-Cola Company will invest $US500 million to help grow CCA’s Indonesian business. The company says the deal will see The Coca-Cola Company taking a 29.4 per cent interest in the Indonesian subsidiary. The expansion plans in Indonesia will cover infrastructure, warehousing and a broader product offering.Group Managing Director Alison Watkins says that with a population of more than 240 million and a fast emerging middle class, Indonesia is a key growth market for CCA. Shares in Coca-Cola Amatil are trading up 5.07 per cent at $9.12
Best and worst performers The best performing sector is consumer staples, gaining 1.1 per cent to 10,032. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have risen 5.07 per cent and trading at $9.12. Shares in Wesfarmers Limited
(ASX:WES) and Graincorp Limited
(ASX:GNC) are also stronger.
The worst performing sector is materials, falling 0.5 per cent to 9,183. Shares in BC Iron Limited
(ASX:BCI) have fallen 6.79 per cent, trading at $1.03. Shares in Beadell Resources Limited
(ASX:BDR) and Medusa Mining Limited
(ASX:MML) are also lower.
Gold and the dollar
Gold is trading at $US1,214 an ounce.
The Australian dollar is buying $US0.8776
