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Following gains of more than 1.2 per cent on Wall Street the Australian share market has advanced 0.9 per cent at noon. All sectors are trading higher led by the energy sector, rebounding from yesterday’s falls, and bank and tech stocks are also stronger.
The only sector trading lower is healthcare, weighed down by Sirtex Medical Limited (ASX:SRX) shedding more than 50 per cent of its $1 billion market cap. BHP Billiton Limited (ASX:BHP) has lifted after revealing the demerger of its proposed spin-off South32 will likely cost the mining company about $US738 million.
Figures
The S&P/ASX 200 index has rallied 49 points to 5,847. On the futures market the SPI is 50 points higher.
Company news
Shares in Sirtex Medical Limited (ASX:SRX) have plunged after revealing clinical trial results for its specialised liver cancer treatment. The drug developer says preliminary analysis determined the primary endpoint of the SIRFLOX clinical study did not show a meaningful improvement. However, the study’s secondary endpoint did show more promise and result in a statistically significant improvement. Sirtex has told FNN this is one study in five and the full data will be examined and reviewed in June. The company’s spokesperson believes today’s stock drop is an overreaction and the results are by no means the end of the story. Shares in Sirtex Medical have plunged 52.44 per cent and are trading at $18.55 at noon.
Mineral sands miner Iluka Resources Limited (ASX:ILU) has inked a term sheet with junior mining company Monax Mining Limited (ASX:MOX). The non-binding term sheet is in respect of a proposed farm-in and joint venture at Monax’s Phar Lap Iron-Oxide Copper-Gold Project in northern South Australia. Under the deal Illuka can earn an 80 per cent stake in the project by spending $2 million over four years. Shares in Iluka Resources have risen 1.63 per cent and are trading at $7.49 at noon.
Best and worst performers
The best performing sector is energy, gaining 2 per cent to 11,162. Shares in Santos Limited (ASX:STO) have risen 3.87 per cent and trading at $7.24. Shares in Worleyparsons Limited (ASX:WOR) and Horizon Oil Limited (ASX:HZN) are also stronger.
The only sector in the red is health care, falling 0.3 per cent to 19,152. Shares in Sirtex Medical Limited (ASX:SRX) have plunged 52.44 per cent, trading at $18.55. Shares in Sigma Pharmaceuticals Limited (ASX:SIP) and Healthscope Limited (ASX:HSO) are also lower.
Gold and the dollar
Gold is buying $US1,155 an ounce.
The Australian dollar is buying $US0.762.
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