After shedding 1.5 per cent yesterday the Australian share market has rebounded out of the red and regained almost 1 per cent in morning trade. Local stocks were sold-off yesterday amid fears US equity valuations may be unreasonably high and investors are getting too optimistic. But buying returned to Wall Street overnight on the back upbeat retail figures and encouraging earnings.
Australia has followed suit with most major sectors buoyant at noon while the gold sub-index has reversed yesterday’s direction and dropped this morning. Across the top 200 stocks the gold miners are dragging while OZ Minerals Limited (ASX:OZL)
has surged after hitting its gold and copper production guidance.
The S&P/ASX 200 index has recovered 32 points in morning trade and is sitting at 5,244. On the futures market the SPI is 30 points higher.
Business finance commitments climbed ahead of personal finance in November 2013. The Australian Bureau of Statistics reports total business finance commitments gained 8.3 per cent to $37.25 billion. Personal lending commitments gained 0.6 per cent to $7.93 billion.
Shares in Salmat Limited (ASX:SLM)
are trading steady after the telecommunications company appointed Craig Dower as its new CEO who is poised to take the reins on April 14, 2014.
Shares in Mineral Deposits Limited (ASX:MDL)
have fallen 5.5 per cent after the mineral sands focussed miner revealed it has sold its stake in Canada-based gold company Teranga Gold Corp (ASX:TGZ)
for proceeds of about $US20 million.
Shares in Tiger Resources Limited (ASX:TGS)
have gained 5.6 per cent after the copper explorer said it has boosted the estimated ore reserve for the principal deposit at its Kipoi Copper Project in the Democratic Republic of Congo by 112 per cent.
Shares in WildHorse Energy Limited (ASX:WHE)
have surged 32 per cent after announcing the Hungarian Parliament has modified a mining law which now includes specific regulation on underground coal gasification. The company’s most advanced underground coal gasification asset is located in Hungry.
Best and worst performers
Most sectors have rallied after yesterday’s falls: The best performing sector is energy gaining 74 points to 13,223. Shares in Paladin Energy Limited (ASX:PDN)
have risen 7.78 per cent and trading at $0.48. Shares in Whitehaven Coal Limited (ASX:WHC)
and AWE Limited (ASX:AWE)
are also stronger.
The worst performing sector is utilities, falling 3 points to 5,380. Shares in Energy World Corporation Limited (ASX:EWC)
have dropped 2.63 per cent, trading at $0.37. Shares in AGL Energy Limited (ASX:AGK)
and Spark Infrastructure Group (ASX:SKI)
are also lower.
Gold and the dollar
The price of gold fell more than $5 overnight and has fallen further this morning to $US1,243.50 an ounce.
The Australian dollar fell more than three-quarters of a US cent overnight but has firmed slightly this morning to $US0.8974.