News: Midday: ASX gains after global market rally

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The Australian share market has returned to positive territory after yesterday breaking a seven-day winning streak. The benchmark index is 0.34 per cent higher at noon following a rally on global markets overnight. Wall Street surged my more than 1 per cent with traders impressed by better than expected earnings. 

 

On the local front, with no major economic news to steer direction, attention is on a number of companies holding annual general meetings. Across the board weakness in the mining sector on the back of lower commodity prices is being offset by strength among the banking giants. 

 

Figures

 

The S&P/ASX 200 index has risen 16 points to 5,399 at noon. On the futures market the SPI is 11 points higher. 

 

Company news

 

The Coalition government has knocked back calls to establish a royal commission into Commonwealth Bank of Australia (ASX:CBA). A Senate Committee report called for a royal commission in June to look into the bank’s multi-million dollar financial planning scandal. The scandal spanned between 2003 and 2012 and saw a group of planners secretly allocate clients money into risky investments. Today’s development come after CBA yesterday outlined new educational standards for its advisers and licensee staff. Shares in Commonwealth Bank of Australia are trading 0.52 per cent higher at $78.58 at noon. 

 

ResMed Inc (ASX:RMD) says it has had a successful start to the new financial year and reported a 6 per cent rise in first quarter revenue. The manufacturer of medical equipment generated quarterly revenue of $US380 million. Resmed’s result was aided by product launches, a strong performance from Europe and the Asia Pacific and solid growth in the Americas. The company has affirmed it expects to deliver on its promise to drive top-line revenue growth over the full financial year.Shares in ResMed are trading 5.03 per cent stronger at $5.64 at noon.

  

Best and worst performers

 

The best performing sector is health care, gaining 0.9 per cent to 15,633. Shares in ResMed Inc. (ASX:RMD) have risen 5.03 per cent and trading at $5.64. Shares in Mesoblast Limited (ASX:MSB) and Sonic Healthcare Limited (ASX:SHL) are also stronger. 

 

The worst performing sector is utilities, falling 0.4 per cent to 5,823. Shares in AGL Energy Limited (ASX:AGK) have eased 1.4 per cent, trading at $13.40. Shares in AusNet Services (ASX:AST) are lower while shares in DUET Group (ASX:DUE) are slightly higher. 

  

Gold and the dollar

 

Gold is trading at $US1,232 an ounce. 

The Australian dollar is buying $US0.8723.