Midday: Aus shares rocket 1.71% at noon

Market Reports

by Carolyn Herbert

Following positive leads from US markets on Friday, the Australian share market opened sharply higher and is now surging up 1.71 per cent at noon. The financials space has made a stellar rebound from last week’s losses, with ANZ leading the charge up 3 per cent. There is also a sea of green across the materials space, with the likes of BHP jumping over 2 per cent. Gold and silver miners have continued their winning streak with St Barbara up more than 5.5 per cent and Perseus Resources up around 7 per cent.

The S&P/ASX 200 index is 90 points higher at 5,320. On the futures market the SPI is 89 points higher.

To company news: Panoramic Resources Limited (ASX:PAN) has announced it will partially divest its Gum Creek Gold assets by way of an IPO on the ASX. The indicative structure is to value the Gum Creek Gold assets at $15 million and raise $15 million in new equity via a priority entitlement to existing Panoramic shareholders. Shares in Panoramic Resources are trading up 8.57 per cent at $0.19.

Avita Medical Limited (ASX:AVH) has announced it has raised $9 million in a partially underwritten rights issue to support the company’s strategy to launch in the US and push forward with product commercialisation. Avita manufactures cell-harvesting devices which can be used to treat burns, chronic wounds and skin defects. The company has today allotted just over 100 million new shares under the offer. Shares in Avita Medial are trading down 6.06 per cent at $0.093.

To the best and worst performers: The best performing sector is Materials, gaining 2.4 per cent to 8,618. Shares in Iluka Resources have risen 8.51 per cent and trading at $7.01. Shares in Independence Group and St Barbara are also stronger.

The sector with the least gains is Energy, adding 0.3 per cent to 8,309. Shares in Santos have fallen 0.42 per cent, trading at $4.74. Shares in Oil Search are lower, but Caltex is higher.

Finally, to gold and the dollar: Gold is trading at $US1,370 an ounce.
The Australian dollar is buying $US0.7546.


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