The Australian share market has rebounded out of the red and erased a week of falls. Following gains on global markets the benchmark has jumped 1.8 per cent at noon. All sectors have moved higher, led by strength among mining and energy stocks. Support has come from higher commodity prices after the oil price spiked almost 5 per cent.
The S&P/ASX 200 index has advanced 102 points to 5,846 at noon. On the futures market the SPI is 75 points stronger.
Shares in GBST Holdings Limited (ASX:GBT)
have surged to the best performer in the All Ords after unveiling first half results. The provider of software and services boosted its net profit by 58 per cent to $6.9 million while revenue rose 14 per cent to $55.7 million. GBST Holdings says for the first time international sales exceeded Australian sales. The company has increased its fully franked interim dividend by 25 per cent to 5 cents per share. Shares in GBST Holdings have surged 14.14 per cent and are trading at $4.52 at noon.
Shares in Prana Biotechnology Limited (ASX:PBT)
have slumped after providing an update on its End-Of-Phase 2 discussions with the US Food and Drug Administration. The biotech company says the FDA has issued a partial clinical hold letter which currently limits the dose of PBT2 that can be given to patients with Huntington disease. Prana plans to continue discussions with the FDA to address the issues raised so that it may move forward with clinical trials of PBT2. Shares in Prana Biotechnology have slumped 21.95 per cent and are trading at $0.16 at noon.
Best and worst performers
The best performing sector is materials, gaining 3.2 per cent to 9,428. Shares in Sims Metal Management Limited (ASX:SGM)
have risen 8 per cent and trading at $11.47. Shares in PanAust Limited (ASX:PNA)
and Arrium Limited (ASX:ARI)
are also stronger.
The sector with the fewest gains is health care, rising 0.3 per cent to 18,097. Shares in Mesoblast Limited (ASX:MSB)
have dropped 3.85 per cent, trading at $4.24. Shares in CSL Limited (ASX:CSL)
are lower while shares in Sirtex Medical Limited (ASX:SRX)
are higher at noon.
Gold and the dollar
Gold is buying $US1,225 an ounce.
The Australian dollar is buying $US0.7748.