News: Midday: ASX hovers as miners move higher

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Despite a weak lead from Wall Street the Australian share market opened slightly higher but has hovered steady in morning trade. The miners are supporting gains after the price of iron ore rallied above $US95 overnight and health care and telco stocks are also stronger. Retailers are weaker amid fears of more write-downs as confession season continues ahead of the August reporting season.   

 

Figures

 

The S&P/ASX 200 index has lost 2 points to 5,463. On the futures market the SPI is flat. 

 

Company news 

 

A Senate committee has called for a royal commission into Commonwealth Bank of Australia’s (ASX:CBA) financial planning scandal. CBA has acknowledged the Senate Committee report and says it will now review it along with the report’s recommendations. The bank has reiterated its apology for the past events which saw a group of planners secretly allocate clients money into risky investments. CBA has also strongly refuted Senator Mark Bishop’s accusations among which claim the actions were facilitated by a reckless, sales-based culture and negligent management. Shares in Commonwealth Bank of Australia are trading 0.04 per cent lower at $82.03. 

 

Crown Resorts Limited (ASX:CWN) chief James Packer's wealth has rebounded to pre-GFC levels to put him third on BRW's Rich 200 list. The annual list of Australia's richest saw a record 39 billionaires this year led by mining magnate Gina Rinehart with $20 billion and Anthony Pratt and family with a $7.64 billion fortune. Mr Packer's $7.19 billion was supported by Crown's stellar performance after Sydney’s Barangaroo development scored the green light. BRW placed Westfield's founder Frank Lowy fourth on the ladder followed by Glencore Xstrata's chief Ivan Glasenberg in the fifth spot. Shares in Crown Resorts have gained almost 25 per cent over the year but today are trading 0.69 per cent lower at $15.20. 

  

Best and worst performers

 

The best performing sector is health care, gaining 79 points to 14,426. Shares in Mesoblast Limited (ASX:MSB) have risen 1.77 per cent and trading at $4.61. Shares in Primary Health Care Limited (ASX:PRY) and Cochlear Limited (ASX:COH) are also stronger. 

 

The worst performing sector is consumer discretionary, falling 6 points to 1,791. Shares in Tabcorp Holdings Limited (ASX:TAH) have fallen 5.56 per cent, trading at $3.40. Shares in G8 Education Limited (ASX:GEM) and Seven West Media Limited (ASX:SWM) are also lower. 

 

Gold and the dollar

 

Gold is trading at $US1,316.31 an ounce. 

The Australian dollar is buying $US0.9421.