A bounce in oil and gold prices overnight has provided some relief for the Australian share market which opened higher and is 0.6 per cent up at noon.
The S&P/ASX 200 index is 34 points up at 5,242. On the futures market the SPI is 37 points higher.
Economic news
The Reserve Bank will announce its decision on interest later today. Most analysts expect the cash rate to remain unchanged at 2.5 per cent however market chatter is talking up the increasing chance of a rate cut sometime next year.
Company news
Vocation Limited
(ASX:VET) has been placed in a trading halt today. The company has requested the halt so it can complete financal reviews and expects to update its FY15 guidance by Thursday December 4 if not before. Just last week, Vocation chairman John Dawkins quit on the spot saying that Vocation needed to rebuild the support of its shareholders. The education services provider recently completed a review of its Victorian business after complaints that the courses were over priced and not up to scratch. The restructure resulted in 87 redundancies. Shares in Vocation last traded at $0.50 down from highs of $3.25 in September.
Villa World Limited
(ASX:VLW) has announced the purchase of two sites in South East Queensland. The residential developer has agreed to pay $7.4 million for a site at Joyner and $6.25 million for a site at Mango Hill with both contract due to settle in July 2015. The Joyner site will be developed into 82 lots as a premium land only subdivision whilst Mango Hill will be developed as a house and land community of 107 lots. The projects will begin contributing to earnings in FY16. Shares in Villa World are trading 1.1 per cent lower at $1.80.
Best and worst performers
The best performing sector is materials, gaining 2.3 per cent to 8,523. Shares in Evolution Mining have reversed some of their recent losses, rising 17.24 per cent and trading at $0.51. Shares in Northern Star and Beadell Resources are also stronger.
The worst performing sector is staples, falling 0.7 per cent to 9,023. Shares in Metcash continue their downward spiral falling 8.49 per cent, trading at $2.00. Shares in Woolworths and Bega Cheese are also lower.
Gold and the dollar
Gold is trading at $US1,205 an ounce.
The Australian dollar is buying 84.85 US cents.
