Banks bounce: Aus shares 0.83% higher at noon

Market Reports

by Carolyn Herbert

Following positive leads from Wall Street on Friday on the back of stronger than expected jobs numbers, the Australian share market opened sharply higher and is now up 0.83 per cent at noon. The financials space, namely the big four banks is leading the charge, with the likes of NAB and ANZ gaining around 1.7 per cent. The materials space is mixed with gains in the big miners BHP and Rio Tinto, however gold stocks are suffering after a drop in the price of the precious metal overnight.

The S&P/ASX 200 index is 47 points up at 5,544. On the futures market the SPI is 38 points higher.

Company news

Bendigo and Adelaide Bank (ASX:BEN) has announced an after tax statutory profit of $415.6 million for the 12 months ended 30 June 2016, a 2 per cent decline on the previous corresponding period. The company has proposed a final dividend of 34 cents per share, lifting the full year dividend by 2 cents to 68 cents per share. Shares in Bendigo Bank are trading up 3.08 per cent at $10.03.

PolyNovo Limited (ASX:PNV) says it is expecting a loss in the range of $3.25 million to $3.36 million after tax for the year ended 30 June 2016. This is an increase on last year’s prior loss of $1.41 million after tax. The company says the increase in loss is predominantly due to the increase in research and development, as well as clinical trial and administrative expenses. Shares in PolyNovo Limited are trading flat at $0.28.

Best and worst performers

The best performing sector is Financials excluding REITs, gaining 1.5 per cent to 6,730. Shares in FlexiGroup have risen 4.78 per cent and trading at $2.19. Shares in Bendigo Bank and Genworth are also stronger.

The worst performing sector is Telcos, falling 0.2 per cent to 2,084. Shares in Vocus have fallen 0.35 per cent, trading at $8.57. Shares in Spark NZ and Telstra are also lower.

Gold and the dollar

Gold is trading at $US1,336 an ounce.
The Australian dollar is buying $US0.7606.


Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.