The Australian share market jumped more than 1 per cent at open boosted by positive offshore leads, optimism ahead of a bailout vote for Greece this evening and news China has cut bank reserve requirements. Across the boards, most sectors are advancing led by the mining and energy sectors. The financial and telco sectors are being weighed down by heavyweights Commonwealth Bank of Australia (ASX:CBA) and Telstra Corporation Limited (ASX:TLS) trading ex-dividend today.
The S&P/ASX 200 index has gained 47 points and is 4,243. On the futures market the SPI is 58 points stronger.
Economic news
Retail spending continued to increase at the beginning of this year according to a measure of value between credit and debit card transactions processed through Commonwealth Bank's point-of-sale terminals. The bank’s Business Sales Indicator, increased 0.6 per cent in January after rising 0.7 per cent the month before.
Company news
Shares in Billabong International Limited (ASX:BBG) have risen to one of the sessions best performers after suitor, private equity group TPG Capital, launched a fresh bid on the surf-wear retailer. Billabong says it received the new non-binding, indicative proposal from TPG to acquire the company for $3 cash per share before the market opened today. While the offer is still subject to due diligence, Billabong has told shareholders to take no action as the company considers the proposal. Shares in Billabong International have risen 8.78 per cent and are trading at $2.85.
Singapore Telecommunications Limited’s (ASX:SGT) Australian arm Optus announced a $230 million acquisition to build a faster 4G network. Optus has inked the deal to buy Vividwireless Group Limited from Seven Group Holdings Limited (ASX:SVW). Optus says the purchase will give it a significant increase in network capacity to address the next wave of data growth that is just around the corner. Shares in Singapore Telecommunications have gained 1.55 per cent and are trading at $2.295.
Best and worst performers
Most sectors have advanced: The best performing sector is Energy gaining 271 points to 14,038. Shares in Aurora Oil & Gas Limited (ASX:AUT) have risen 5.23 per cent and trading at $3.22. Shares in Karoon Gas Australia Limited (ASX:KAR) and Metgasco Limited (ASX:MEL) are also stronger.
The only sector in the red is Telco Services, falling 35 points to 1,128. Shares in Telstra Corporation Limited (ASX:TLS) are trading ex-dividend today, 3.37 per cent lower, at $3.295. Shares in Hutchison Telecommunications (ASX:HTA) and iiNet Limited (ASX:IIN) are both lower.
New Zealand
The NZSX50 is 25 points higher at noon: Taking a look at the top four stocks by turnover, Trade Me Group is at the top of the list with stock down 0.64 per cent to $3.12, followed by Fletcher Building, Westpac and Telecom Corporation of New Zealand.
Gold and the dollar
Gold is trading at $US1,733 an ounce.
The Australian dollar is buying $US1.0797.
