It has been a strong start to the trading session for the Australian share market following positive leads from Wall Street overnight. The local bourse bounced at the open and has continued to gain momentum in the first two hours of trade, and has risen 0.77 per cent at noon. While most sectors are in the green today, Materials are leading the charge once again with some solid gains in BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO). The Energy space is also charging ahead and we’ve also seen gains across the board in Financials.
The S&P/ASX 200 index is 44 points up at 5,800. On the futures market the SPI is 59 points higher.
Checking in with how Asian markets are tracking now, Japan’s Nikkei has added 0.5 per cent, Hong Kong’s Hang Seng has added 0.8 per cent and the Shanghai Composite has gained 0.4 per cent.
According to latest figures from the Australian Bureau of Statistics household assets outgrew liabilities during the March quarter 2017, resulting in a 2.4 per cent uptick in household net worth. Household long term loan borrowing has also hit the 2 trillion mark. Job vacancy data has also been released for May, with total job vacancies coming in at 189,200, an increase of 1.7% from February 2017 in trend terms.
Slater and Gordon Limited (ASX:SGH) has entered into a binding recapitalisation agreement with its lenders who collectively represent over 75 per cent of secured debt by value. Discussions with the lenders have been led by Anchorage Capital Group. The capitalisation is intended to provide the embattled law firm with a sustainable level of senior secured debt and a stable platform for future operations locally and in the UK. Shares in Slater and Gordon are trading down 3.26 per cent at $0.09.
Prime Media Group (ASX:PRT) has reduced its bank facility agreement with ANZ (ASX:ANZ) from $100 million to $80 million. The regional TV network also announced in light on the Federal Government’s announcement about scrapping licence fees for free-to-air broadcasters, its FY2017 NPAT will rise. Prime now expects its NPAT will be between $33.5 million and $35 million. Shares in Prime Media Group (ASX:PRT) are trading up 5.8 per cent at $0.36.
Best and worst performers
The best performing sector is Materials, gaining 1.9 per cent to 9,896. Shares in Mineral Resources Limited (ASX:MIN) have risen 6.94 per cent and trading at $10.33. Shares in Evolution Mining (ASX:EVN) and SIMS Metal Management (ASX:SGM) are also stronger.
The worst performing sector is REITs, falling 1.5 per cent to 1,351. Shares in Stockland (ASX:SGP) have fallen 3.81 per cent, trading at $4.54. Shares in BWP Trust (ASX:BWP) and Charter Hall (ASX:CHC) are also lower.
ELMO Software Limited (ASX:ELO) started trading today. The HR software company floated with an issue price of $2.00, opened at $2.17 and is currently trading at $2.50.
Gold and the dollar
Gold is trading at $US1,253 an ounce and the Australian dollar is buying $US0.7662.