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Following positive leads, the Australian share market opened strongly and is 0.55 per cent higher at noon as investors mull through a huge onslaught on earnings including QBE, IAG and Toll Holdings with BHP to come this afternoon.The S&P/ASX 200 index is 29 points up at 5,617. On the futures market the SPI is 47 points higher.Economic news
Minutes from the RBA’s latest meeting on Aug 5 have indicated interest rates are set to remain on hold for the foreseeable future. The RBA says Australia’s economic outlook remains uncertain for a number of reasons. GDP growth has slowed to a more moderate pace. Whilst the housing market remains strong conditions are stabilising and there’s a notable degree of spare capacity in the labour market.And The ANZ-Roy Morgan weekly index of consumer sentiment has recorded another lift, up 3.7 per cent to 112.5.
Company newsOil Search Limited (ASX:OSH) has today reported half year net profit jumped 34 per cent to US$152.5 million. This compares to US$113.5 million for the same period in 2013. The result was largely driven by their liquefied natural gas project which is now up and running in Papua New Guinea. Higher oil prices and slightly higher oil volumes also added to the result which came in above analyst expectations. The PNG LNG project has delivered well ahead of schedule and within budget and the revenues are adding to a strengthening balance sheet. The oil and gas explorer says it is undergoing a strategic review to maximise superior returns over the next five years. Oil Search announced a first half dividend of US 2c per share un-franked. Shares in Oil Search are trading 0.48 per cent lower at $9.40.Amcor Limited (ASX:AMC) says full year profit has risen nearly 25 per cent to $737 million, up from $589 million the year before. Earnings per share also jumped 25 per cent to 61.1 cents. Managing Director and CEO Ken MacKenzie said the key drivers were ‘benefits from recent acquisitions, ongoing growth in emerging markets and continued improvement in operating performance”. The packaging company also enjoyed a boost from currency movements with only 5 per cent of its business now calculated in Australian dollars. Recent expansion into Indonesia, China and India also helped the bottom line. The company lifted its final dividend to 23.5 cents bringing the full year pay out to 43c un-franked. Mr MacKenzie says he expects even higher earnings in the 2015 financial year. Shares in Amcor are trading 4.33 per cent stronger at $10.72.Best and worst performers
The best performing sector is materials, gaining 1.3 per cent to 10,514. Shares in Arrium have risen 8.61 per cent and are trading at $0.82. Shares in Lynas and Amcor are also stronger.All sectors are positive but the sector with the least gains is financials excluding real estate investment trusts, lifting 0.04 per cent to 7,250. Shares in Commonwealth Bank have fallen 1.81 per cent, trading at $79.93 after trading ex-dividend. Shares in NAB are lower and Bendigo and Adelaide Bank are also trading ex-dividend.Gold and the dollar
Gold is trading at $US1,300 an ounce.The Australian dollar is buying 93.39 US cents.
