Dollar drop boosts ASX: Aus shares 0.49% higher at noon

Market Reports

by Jessica Amir

The Australian share market is having positive day of trade, after the Aussie dollar dropped, which is boosting buying confidence. Currently mostly all the sectors are in the green, and the ASX200 is continuing to gain momentum, despite commodity prices sliding and weaker than expected economic news.

Some energy companies are defying the odds and pushing up, despite the oil price falling. Santos (ASX:STO) has gone a step further and is shining 2 per cent higher after it inked a farm out deal in PNG.

Putting a cap on gains though are falls in some Telcos players, with the likes of Vocus Group (ASX:VOC) losing over 2 per cent. while some miners are also seeing minor losses. 

The S&P/ASX 200 index is up 29 points higher or 0.48 per cent up to 5,974 (at noon). 

On the futures market the SPI is 31 points higher.

Local economic news

Australia recorded a trade surplus of $105 million in October 2017, a decrease of $1.5 billion on the surplus in September. And despite the weaker than expected economic news, the ASX200 is pushing up. 

More company news 

Woolworths (ASX:WOW) changed its name to Woolworths Group Limited today, while it’s retaining the same ticker code. Its shares are 0.22 per cent higher to $26.91.

Air New Zealand (ASX:AIZ) advised that there will be some international flight cancellations and delays ‘each day over the coming weeks’. The company says it’s because of the recent Rolls Royce engine events on the Boeing 787-9 fleet. Rolls Royce told the NZ airliner that some of the fleet will need maintenance sooner than advised. The engine provider is also not able to offer the NZ carrier spare engines while works are done. Air New Zealand says it will not affect its guidance and its shares are trading 1.04 per cent higher to $2.92

Fonterra Co-Operative Group (ASX:FSF) appointed one of its directors to the Milk Price Panel. Bruce Hassal replaces the outgoing David Jackson, who retired from the company’s board last month. All this comes just a day after the global dairy company dropped its Farmgate Milk Price by $0.35 to $6.40 per kilogram of milk solids after the Global Dairy Trade price for whole milk powder fell about 10 per cent since August 2017.  Shares Fonterra are flat at $5.80.

IPOs

Rhythm Biosciences (ASX:RHY) started trading today. The company is developing a blood test for the early detection of colon or rectum cancer. It floated with an issue price of $0.20, opened at $0.30 and is currently trading at $0.32.

And Agricultural company, Roots (ASX:ROO) started trading on the ASX today after raising $5 million.

Best and worst performers

The best performing sector is Utilites, gaining 1.2 per cent to 8,847. Shares in Spark Infrastructure Group (ASX:SPK) have risen 1.50 per cent to $2.71. Shares in APA Group (ASX:APA) and AGL Energy (ASX:AGL) are also stronger.

The worst performing sector is Materials, at midday it was flat at 10,834. Shares in Alumina (ASX:AWC) have fallen 3.6 per cent to $2.12. Shares in Galaxy Resources (ASX:GXY) and Western Areas (ASX:WSA) are also lower.

Gold and the dollar

Gold is trading at $US1,263 an ounce and one Australian dollar is buying 75.45 US cents.