News: Midday: ASX surges & banks hit record highs

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Wall Street surged overnight in the wake of comments from the US Federal Reserve and the local market has followed, it’s 1.4 per cent up at noon. 

 

The Fed Chair Janet Yellen most notably removed the word “patient” from the bank’s timeline on lifting interest rates, this was then balanced with a weaker outlook on the US economy suggesting there is still spare capacity in high unemployment rates that is keeping inflation in check. The result was optimism on the markets, that rates and the US dollar would stay lower in the short term.

 

There were some big gains today with Commonwealth Bank, ANZ, Westpac and CSL hitting all-time highs, and even the major miners were in the black despite a further slide in the iron ore price.

 

The S&P/ASX 200 index is 84 points up at 5,927. On the futures market the SPI is 47 points higher. 

 

Company news

 

Shares in Watpac Limited (ASX:WTP) have jumped on news of $78 million construction deal for the Brisbane Airport hotels and conference centre development. The Australian construction company has signed the contract with Flynn Property Group with major works due to start in May this year. Managing Director Martin Monro says the project will draw upon the company’s national experience in delivering luxury high quality hotel developments. Shares in Watpac are trading up 7.43 per cent at $0.80 

 

Sigma Pharmaceutical Limited (ASX:SIP) has also posted gains on the back of its full year results despite a slight dip in net profit. The pharmaceutical company says revenue and earnings both saw growth and a dividend of 2 cents per share will be paid. Shares in Sigma are trading up 4.36 per cent at $0.90 

  

Best and worst performers

All major sectors are higher today and the best performing sector is REITs, gaining 2.1 per cent to 1,310. Shares in Charter Hall Group (ASX:CHC) have risen 3.25 per cent and trading at $5.09. Shares in Goodman Group (ASX:GMG) and Mirvac Group (ASX:MGR) are also stronger.

 

The sector with the least gains is consumer staples, up 0.8 per cent to 9,304. Shares in Asaleo Care Limited (ASX:AHY) have fallen 0.86 per cent, trading at $1.73. Shares in Tassal Group Limited (ASX:TGR) and Graincorp Limited (ASX:GNC) are higher. 

 

Gold and the dollar

Gold is trading at $US1,173 an ounce.

The Australian dollar is buying $US0.7791