Midday Market Analysis: Quiet Morning
The Aussie market is fairly flat heading into the afternoon session, with the XJO currently four points above water, at 4274.
As might be expected, the sectors are fairly evenly balanced between winners and losers, with energy, financials and utilities the best performers.
Conversely, the consumer discretionary, IT and telco sectors are the weakest links.
In company news, Qantas Airways announced that it will create Hong-Kong’s first low-cost carrier.
Jetstar Hong Kong will be formed with joint venture partner Eastern Airlines with the aim of cornering the fast-growing Chinese market.
Elsewhere, Gunns announced that it may seek to raise about $400 million via a new capital raising that could involve a placement of shares to new investors.
The company’s aim is to raise enough money to significantly cut its debt and strength its balance sheet.
Around the region, Asian markets are mixed; the Hang Seng is off 0.1% whilst the Nikkei is 0.3% stronger.