CANBERRA: The Australian stock market recovered after a weak start and is modestly higher on Friday after a choppy session on Wall Street. Nevertheless, investors are cautious ahead of the release of Chinese manufacturing data and the monthly U.S. jobs data later in the day. In late-morning trades, the benchmark S&P/ASX 200 Index is adding 13.10 points or 0.23 percent to 5,658.50, off a high of 5,662.80. The broader All Ordinaries Index is up 13.30 points or 0.23 percent to 5,709.70. Gold miner Newcrest Mining is advancing almost 1 percent and Evolution Mining is rising almost 2 percent after gold prices climbed overnight. Among the major miners, BHP Billiton is losing more than 1 percent, while Rio Tinto and Fortescue Metals are declining almost 2 percent each. Among oil stocks, Santos is lower by 0.1 percent, Oil Search is down 0.2 percent and Woodside Petroleum is losing almost 1 percent after crude oil prices slipped overnight.
Biotechnology giant CSL is rising almost 2 percent and pallet distributor Brambles is gaining more than 2 percent. Seven West Media chief executive Tim Worner will remain in his job after a probe cleared of misconduct allegations made by a former employee with whom he had an affair. The company’s shares are losing 0.7 percent. Virgin Australia reported a 37.1 percent decline in second-quarter underlying profit. The airline’s shares are unchanged. James Hardie Industries reported an eight percent increase in its nine-month profit, but further lowered its full-year guidance. The building materials supplier’s shares are adding 0.5 percent. Macmahon Holdings shares are rising 2 percent after the mining services company advised shareholders not to respond to construction giant CIMIC’s takeover bid until Macmahon issued a fully analysis of the offer.
In economic news, the latest survey from the Australian Industry Group showed that the service sector in Australia continued to expand in January, albeit at a slower pace, with a Performance of Service Index score of 54.5. That’s down from 57.7 in December, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
