The Australian share market has proved its resilience this morning, defying negative leads from Wall Street and it opened in the black. The local bourse is now tracking 0.61 per cent up at noon.
Most of the sectors are tracking higher in the first two hours of trade with Financials, Reits, Utilities and Energy leading the charge after the oil price rose overnight after Saudi Arabia pledged to make real supply cuts.
Most of the heavy weights in the financials space are trading over 1 per cent higher each, with Westpac (ASX:WBC) CBA (ASX:CBA) NAB (ASX:NAB) and ANZ (ASX:ANZ) holding the trump card.
The S&P/ASX 200 index is 35 points up at 5,713. On the futures market the SPI is 25 points higher.
Japan’s Nikkei has lost 0.1 per cent, Hong Kong’s Hang Seng has risen 0.2 per cent and the Shanghai Composite has fallen 0.2 per cent.
Local economic news
Business confidence slightly eased in May, according to the NAB. The bank’s index fell 1 point to 12 index points in the month, from April, which is still well above the bank’s average long-run level of confidence.
The softer result in May was largely driven by construction and finance, property and business services, while all industries are recording positive business conditions.
Ten Network Holdings (ASX:TEN) has entered into a trading halt after it received notice that two of its guarantor shareholders, will not extend or increase the company’s credit facilities. As a result, Ten’s board is now considering a range of refinancing and restructuring initiatives. It comes as Ten received notice from financial advisory firms, Illyria and Birketu, that they don’t intend to increase their support beyond the current facility, that expires on 23 December 2017. Ten requested the trading halt last for 48 hours, or until it makes an earlier announcement. Ten Network Holdings (ASX:TEN) shares last traded at 16 cents.
Crown Resorts Limited (ASX:CWN) has announced that all of its detained employees in China, as well as its employees released on bail, have now been charged with offences relating to the promotion of gambling. Their cases have been referred to the Baoshan District Court, in Shanghai. Crown Resorts says as their cases are now before the court, Crown will not be making any further comment. It comes as foreign Casinos are not allowed to directly advertise gambling in mainland China. Crown Resorts Limited (ASX:CWN) shares are currently trading 0.7 per cent lower at $12.77.
The best and worst performers
The best performing sector is Real Estate Investment Trusts, gaining 1.4 per cent to 1,397. Shares in Vicinity Centres (ASX:VCX) have risen 2.19 per cent and trading at $2.80. Shares in Iron Mountain Incorporated (ASX:INM) and Westfield Corporation (ASX:WFD) are also stronger.
The worst performing sector is Telcos, falling 1 per cent to 1,522. Shares in Vocus Group Limited (ASX:VOC) have fallen 2.96 per cent, trading at $3.60. Shares in TPG Telecom Limited (ASX:TPM) and Telstra Corporation Limited. (ASX:TLS) are also lower.
Gold and the dollar
Gold is trading at $US1,266 an ounce and the Australian dollar is buying 75.58 US cents.