Shares open 2% higher after week of chaos, Banks warn on cash transaction laws: Midday Roundup

The Australian sharemarket has opened nearly 2% higher this morning after a strong result from Wall Street late last week, indicating that the panic following Standard & Poor’s downgrade of the US credit rating may be over.

The benchmark S&P/ASX200 index was up 80 points or 1.93% to 4253.2 at 12.00 AEST, while the Australian dollar has also opened higher at $US1.03c.

AMP shares have risen 2.76% to $4.09, while Commonwealth Bank shares have fallen 2.97% to $47.12. Westpac shares rose 1.51% to $20.78 as NAB rose 1.83% to $23.38.

Wall Street investors are looking to housing and manufacturing data which are predicted to set the mood for this week’s trading.

Banks warning businesses to prepare for new cash transactions laws

The Australian Banking Association has started warning consumers they will need to prepare for new laws that will require banks collect and report information on them if they transact more than $10,000 in cash.

While all banks are currently required to report cash transactions of that amount or more, new rules will require those banks to collect that information, record and report the identity of the person to the Australian Transaction Reports and Analysis Centre.

ABA chief executive Steven Munchenberg said in a statement the banks are now preparing to comply with the new laws.

“Banks understand that questions and paperwork can take time and can be frustrating for customers. However, the Government has explained that the aim of this information collection is to reduce the risk of the banking system being used to launder money or finance terrorism.”

“The laws require banks to collect information from the person standing at the branch counter who is performing this transaction. This means you will be asked by staff to provide information and identification documents, such as a photo ID, so the $10 000 cash transaction can be completed.”

New car sales rise in July

New car sales jumped 8% in July, according to the latest figures from the Australian Bureau of Statistics.

The figures show 87,773 cars were sold in July, up by 8.6% compared to the previous corresponding period. Sales have risen 0.9% across the entire year.

Infrastructure group UGL, Ansell report full-year profit lifts

Infrastructure group UGL has posted a 10% lift in profit for the 2012 year to $158.5 million, with revenue edging up 2.4% and the company declining to give guidance for the year ahead as it assesses recent global economic turmoil.

“We are always assessing potential acquisitions but will only pursue opportunities that make a positive contribution to our shareholders in the short to medium term as well as build upon our recurring revenue base,” UGL managing director and chief executive officer Richard Leupen said.

“UGL is in good shape. With an excellent talent pool, a solid balance sheet which sets us apart, a growing international footprint, and an enviable blue-chip customer base, we again expect to deliver positive returns for our shareholders.”

Meanwhile, condom and rubber gloves maker Ansell has reported a slight lift in profit despite a 0.6% fall in revenue, and tipped an increase in earnings per share in the year ahead.

Ansell says despite higher utility, cotton and natural rubber latex costs, higher volumes and price increases had boosted its performance.

“Ansell expects to build on its strong full year 2011 momentum, maintain emerging markets growth, execute acquisition opportunities and continue to reshape itself into a more agile and growth oriented competitor,” the company said.