Australian Securities Exchange (ASX)
People walk past the Australian Securities Exchange (ASX) building in central Sydney October 20, 2008. Reuters/Daniel Munoz
  • Australian shares are rising for the second day, with the ASX 200 index up 0.1 per cent at lunch. Concerns relating to China’s surprise devaluation of its currency on Tuesday have died down over the past day, helping global markets stabilise.
  • Weakness from mining and energy sectors is holding the market back most at lunch, with oil and gas companies down 2.5 per cent. The price of oil slumped by 2.5 per cent to US$42/barrel; a six-year low due to oversupply concerns.
  • The earnings season continues with iron ore company Atlas Iron (AGO) and building products supplier James Hardie (JHX) releasing results.
  • Atlas Iron (AGO) is up 3.3 per cent despite posting a $1.4bn annual loss. The ore producer has been heavily impacted by a halving in the iron ore price over the financial year. AGO shares went into a trading halt between April and July after halting mining operations. AGO shares have slumped by 80 per cent this calendar year.
  • James Hardie (JHX) is up 1.8 per cent despite downgrading its guidance for FY15 profit. The Dublin based building products maker lifted profit by 27 per cent to US$63.5m in the June quarter.
  • Sonic Healthcare (SHL) is down 0.5 per cent after the medical diagnostics company lost an expected contract in Alberta, Canada likely to generate more than $C200m in annual revenue over a term spanning ~15 years.
  • Banks are mixed at lunch, while CBA remaining in a trading halt due to a ~$5bn capital raising to meet regulatory requirements.
  • 847.6m shares have been traded, worth $1.7bn. 430 stock s are up, 360 down and 259 unchanged.

Steven Daghlian - Market Analyst (Author)

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