After a shaky start, the Australian share market has taken strength from gains in overseas markets and cheaper energy shares to be 0.59 per cent higher at noon. However gains could narrow in afternoon trade with the market already reacting to a disappointing GDP result that has sent the Aussie dollar below 84 US cents.
The S&P/ASX 200 index is 31 points up at 5,312. On the futures market the SPI is 31 points higher.
Economic news
The ABS has reported third quarter GDP growth of just 0.3 per cent, well below analyst expectations of rise of 0.7or 0.8 per cent. It’s also fall from the 0.5 per cent Q2 growth rate reported in June. The economy is now up 2.7 per cent for the year to the end of September.
Company news
Ten Network Holdings Limited
(ASX:TEN) has confirmed it has received non-binding indicative proposals from a number of parties. The broadcaster has appointed Citigroup to consider strategic options and warned that if transactions eventuate it could result in a change of control of Ten or a refinancing of existing debt facilities. An independent committee of the board will now consider these proposals with the TV company also indicating that it may not accept any of the offers on the table. Ten also urged investors to use exercise caution in dealing with its shares on the basis of media speculation surrounding any potential deal. Shares in Ten Network have dipped 5.21 per cent to $0.23.
In an update to the market, Suncorp Group Limited
(ASX:SUN) says it has now received 24,500 home, motor and commercial claims as a result of storms in Brisbane last Thursday. Most of the claims relate to damage to motor vehicles. Suncorp says that it expects more claims and whilst it’s too early to estimate finals costs for the event, early indications suggest it will reach maximum financial impact of $250 million. Suncorp also said it has boosted call centre resources to assist customers but warned it would take time to finish all repairs. Shares in Suncorp are trading 0.14 per cent higher at $14.40.
Best and worst performers
All sectors have made gains in morning trade. The best performing sector is consumer staples, gaining 1.6 per cent to 9,178. Shares in Metcash have recovering 5.79 per cent to trade at $2.01 after a couple of brutal days following a disappointing interim result. Shares in Graincorp and Woolworths are also stronger.
The sector with the least gains is telco services, adding 0.3 per cent to 1,999 Shares in Spark Infrastructure have fallen 1.43 per cent, trading at $2.76. Shares in Telstra are also down whilst shares in M2 Communications have lifted close to half a per cent.
Gold and the dollar
Gold is trading at $US1,195 an ounce.
The Australian dollar is buying 83.95 US cents.
