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The Australian share market has managed to shrug off weak leads from overseas markets to open slightly higher and is 0.1 per cent up at noon.
The S&P/ASX 200 index is 5 points up at 5,571. On the futures market the SPI is 9 points higher.
Looking at economic news: The ABS has reported new car sales for July have fallen. Seasonally adjusted figures show a 1.3 per cent decrease from June and total sales are 0.4 per cent lower than the same period last year.
Company news
Rio Tinto Limited (ASX:RIO) today announced it is placing its options in a majority stake of Bougainville Copper Limited (ASX:BCL) under review. Bougainville Copper has recently been stripped of all its mining and exploration licences by the Bougainville Autonomous Government in a new Mining Act aimed at giving the government more control over its assets. The Panguna mine has long been a contentious issue in PNG sparking a decade long civil war in the 1990’s. Bougainville Copper has been in discussions for some time about how to best handle a future potential return to mining at Panguna. However, Bougainville is due to hold a referendum of independence sometime in the next five years with landowners and other groups seeing the mine as a means to obtain economic independence for the future. Rio Tinto is believed to be considering divesting its nearly 54 per cent stake in Bougainville Copper. Shares in Rio Tinto are trading down 0.25 per cent at $65.13.
Sydney Airport (ASX:SYD) says it is in a formal consultation process with the Australian Government on the development of a second airport at Badgery’s Creek in western Sydney. Sydney Airport has the right of first refusal to build and operate the $2.5 billion development under a number of consultative processes taking place over the next two years. The initial consultation phase will take 9 months commencing 30 September 2014. CEO Kerrie Mather says Sydney Airport has accepted the Australian Government’s invitation and begun to map the considerable work that needs to be addressed during the consultation period. Shares in Sydney Airport are trading down 0.23 per cent at $4.30.
Best and worst performers
The best performing sector is healthcare, gaining 0.4 per cent to 14,923. Shares in Ansell have risen 2.26 per cent and trading at $19.42 despite announcing a drop in full year profit. Shares in Ramsey Healthcare and Vistus Health are also stronger.
The worst performing sector is financials excluding real estate investment trusts. , falling 0.2 per cent to 7,216. Shares in FlexiGroup have fallen 1.32 per cent, trading at $3.75. Shares in National Australia Bank and Bendigo and Adelaide Bank are also lower.
Gold and the dollar
Gold is trading at $US1,300 an ounce.
The Australian dollar is buying 93.12 US cents.
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