Following positive leads from US markets, the Australian share market opened higher and is 0.94 per cent up at noon. Banks and miners are up but energy stocks are still feeling oil price pressures with Santos taking a huge hit after deferring a European capital raising of $733 million.
The S&P/ASX 200 index is 47 points up at 5,369. On the futures market the SPI is 40 points higher.
Looking at economic news: The ABS has reported that retails sales were up 0.4 per cent in October, higher than analyst expectations of a lift of 0.1per cent. And the trade balance came in with a $1.3 billion shortfall in October but well below September’s $2.5 billion deficit and below expectations of a $1.8 billion shortcoming.
Company news
Woolworths Limited
(ASX:WOW) and Hills Limited
(ASX:HIL) have announced a strategic partnership that gives Woolworths exclusive rights to the Hills heritage brand. The deal, for a minimum of seven years and with rights up to 19 years will allow Woollies to exclusively market and distribute more than 240 Hills products from clothes lines to garden sprayers. Hills will maintain ownership of its heritage brand as well as intellectual property and patents including the Hills Hoist and has the potential to increase the licensing fee if product sales exceed expectations. Woollies will have exclusive rights to both Australian and overseas markets. Shares in Woolworths are trading up 0.32 per cent at $31.00
G8 Education Limted
(ASX:GEM) has upped its guidance and lifted its annual dividend by 20 per cent. G8 says that it expects to exceed expected revenue of over $101 million for the financial year ended 31st December but not by over 5 per cent. The company also increases its dividend from 20 cents to 24 cents per share with quarterly dividend payment now increasing from 5 cents to 6 cents per share fully franked. The increase will come into effect for the next payment due in January 2015. Shares in G8 Education are trading up 6.1 per cent at $4.52.
Best and worst performance
The best performing sector is industrial, gaining 1.2 per cent to 4,190. Shares in Leighton Holdings have risen 6.4 per cent and are trading at $21.12. Shares in Monadelphous Group and ALS are also stronger.
The worst performing sector is energy, falling 0.8 per cent to 11,291. Shares in Santos have led the way falling 7.82 per cent, trading at $8.37. Shares in Origin Energy and Beach Energy are also lower.
Gold and the dollar
Gold is trading at $US1,208 an ounce.
The Australian dollar is buying 84.18 US cents.
