News: Midday: ASX led higher by banks and BHP

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Following mixed leads from overseas markets and a 1c plunge in the dollar overnight, the Australian share market opened stronger and is 0.17 per cent up at noon led higher by the big four banks, BHP and Telstra. 

 

The S&P/ASX 200 index is 10 points up at 5,587. On the futures market the SPI is 4 points higher. 
 

Economic news

The NAB monthly Business Survey has dipped in August following a strong result in July. The business confidence index dropped back to 8 after climbing to 10 in the previous month. The retreat was caused by a drop in profits and sales, mainly for retail, transport, manufacturing and wholesale businesses. 

 

Company news

 

Ausdrill Limited (ASX:ASL) is potentially in the position of having to write off $8 million of revenue after one of its clients, Western Desert Resources (ASX:WDR), went into voluntary administration. WDR were unable to renegotiate funding with Macquarie Bank and the falling iron ore price has significantly affected the miner’s bottom line. Ausdrill, which provides drill and blast services to WDR’s Roper Bar operations, is now uncertain of its ability to recoup all or any of the outstanding money. Ausdrill says it remains on site at Roper Bar awaiting further information from WDR. Ausdrill intends to enforce WDR’s contractual obligations and will update the market once it has more information.  Shares in Ausdrill are trading down 7.45 per cent at $1.09. 

 

Decmil Group Limited (ASX:DCG) has been awarded a $20 million contract to build the Elizabeth Quay pedestrian bridge in Perth. The contract is a joint venture between Decmil, Structural Systems and Hawkins Civil and will furnish the quay with a series of promenades and and connect island and ferry terminals. The construction is part of a $2.6 billion development of the area which includes residential high rise, hotels, shops, cafes and restaurants covering 10 hectares of prime waterfront land. It is the second West Australian government infrastructure project Decmil have managed to secure in the past few months. Shares in Decmil Group are trading down 0.81 per cent at $1.83. 

 

Best and worst performers

The best performing sector is real estate investment trusts, gaining 1.2 per cent to 1,145. Shares in CFS Retail have risen 4.31 per cent and trading at $2.18. Shares in Federation Centres and Goodman Group are also stronger. 

 

The worst performing sector is industrials, falling 0.5 per cent to 4,235. Shares in Bradken have fallen 3.07 per cent, trading at $4.42. Shares in Cabcharge and Skilled Group are also lower. 

 

IPOs

BPS Technology Limited (ASX:BPS) started trading today. The technology platform provider floated with an issue price of $1.00, opened at $1.00 and is currently trading at $1.00.    

 

Gold and the dollar

Gold is trading at $US1,258 an ounce.

The Australian dollar is buying 92.82 US cents.