Following mixed leads, the Australian share market opened a touch higher this morning but by noon it was up more than half a per cent.
Markets are anticipating the release of US GDP figures tonight, as well as indications from the US Federal Reserve about potential shifts in monetary policy.
Meanwhile the Standard & Poor’s ratings agency has reaffirmed its confidence in the stability of the Australian economy with a AAA rating for the country’s public finances. Low debt and deficits combined with conservative budgetary policies saw Australia retain the stella rating.
The S&P/ASX 200 index is 31 points up at 5,619. On the futures market the SPI is 30 points higher.
Company news
Genworth Mortgage Insurance Australia Limited
(ASX:GMA) has forecast a full year profit of between $231 and $250 million.
The mortgage insurance company listed in May this year and has posted a net profit of $42.5 million in the period between 19 May and the end of June this year. The company says the strength of the property market has seen fewer loans in arrears which reduced the number and average amount of insurance claims. Shares in Genworth are up 4.59 per cent on the news to $3.42
The chairman of Brambles Limited
(ASX:BXB) Graeme Kraehe is set to retire, with Stephen Johns appointed as his successor.
Mr Kraehe has been Chairman of the transport and logistics company since 2008 and will step down at the end of September. The company says Mr Johns has been a non-executive director since August 2004, he is a former chairmen of both Leighton Holdings and Spark Infrastructure Group. Shares in Brambles are up 1.08 per cent to $9.35
Best performers and worst performers All major sectors are up at noon, the best performing sector is industrials, gaining 0.8 per cent to 4,186. Shares in NRW Holdings Limited
(ASX:NWH) have risen 4.61 per cent and trading at $1.14. Shares in ALS Limited
(ASX:ALQ) and Veda Group Limited
(ASX:VED) are also stronger.
The sector with the least gains is telco services, gaining 0.1 per cent to 1,900. Shares in TPG Telecom Limited
(ASX:TPM) have fallen 1.26 per cent, trading at $5.48. Shares in Telecom Corporation of New Zealand
(ASX:TEL) are down and M2 Group Limited
(ASX:MTU) has gained.
Gold and the dollar
Gold is trading at $US1,299 an ounce.
The Australian dollar is buying $US0.9383
