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Positive leads lifted the Australian share market at open and the benchmark is 0.5 per cent stronger at noon. Traders have been encouraged by more record highs on Wall Street following fresh hopes for European stimulus.
Mining and energy stocks have moved higher despite commodity prices weakening and iron ore hitting a fresh five-year low. The financial sector is trading lower on the back of ex-dividend trading from ANZ Banking Group (ASX:ANZ) and National Australia Bank Limited (ASX:NAB).
Figures
The S&P/ASX 200 index is trading 29.5 points higher at 5,536.
On the futures market the SPI is 44 points stronger.
Economic news
Australian construction activity slowed last month from September’s record high but remained in expansion territory. The Australian Industry Group and Housing Industry Association report the Performance of Construction Index dropped 5.7 points to 53.4 points in October, but stayed above 50 for the fifth straight month which indicates expansion. Ai Group says residential and commercial construction continued to lead the rebalancing of the economy away from the emphasis on mining investment.
Company news
Fortescue Metals Group Limited (ASX:FMG) has condemned strike action initiated yesterday by the Australian Institute of Marine and Power Engineers. The Pilbara focused iron ore miner’s CEO Nev Power believes companies that operate out of Port Hedland are collateral damage in this dispute. Mr Power says Fortescue is monitoring the situation and will take all possible steps to prevent industrial action impacting its business, people, customers and the economy. Shares in Fortescue Metals Group have firmed 2.31 per cent to $3.10 at noon.
Santos Limited (ASX:STO) says its work in the Pilliga was interrupted after protestors gathered at the company’s work site. The oil and gas producer is understood to have been preparing for coal seam gas exploration drilling by clearing the land. Santos has affirmed its commitment to carrying out the work safely and sustainably and says it has received all necessary regulatory approvals. Shares in Santos have risen 1.2 per cent to $12.69 at noon.
Best and worst performers
Most sectors are trading higher: The best performing sector is consumer discretionary, gaining 1.3 per cent to 1,864. Shares in Ten Network Holdings Limited (ASX:TEN) have jumped 9.78 per cent and trading at $0.25. Shares in Super Retail Group Limited (ASX:SUL) and Retail Food Group Limited (ASX:RFG) are also stronger.
One of the few sectors in the red is financials excluding real estate investment trusts, easing 0.2 per cent to 7,348. Shares in National Australia Bank Limited (ASX:NAB) have fallen 3.13 per cent, trading at $33.11. Shares in ANZ Banking Group (ASX:ANZ) and Cover-More Group Limited (ASX:CVO) are also lower.
Gold and the dollar
Gold is trading at $US1,141 an ounce.
The Australian dollar is buying $US0.8567.
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