Despite firmly positive leads from all global markets, the Australian share market opened lower and is 0.4 per cent down at noon. The market is retreating somewhat after yesterday’s gains with BHP and energy stocks providing the main drag.
The S&P/ASX 200 index is 31 points down at 5,410. On the futures market the SPI is 31 points lower.
Company news
Treasury Wine Estates Limited
(ASX:TWE) has informed the market that legal proceedings brought against the wine producer by Melbourne City Investments have been thrown out of court. The Victorian Court of Appeal found the proceeding to be an abuse of process. The court determined that the legal action had been brought about for the purpose of MCI’s sole director and shareholder to earn legal fees by acting as the solicitor for MCI thereby creating income for the solicitor which constituted abuse of the court’s processes. The Court recommended the proceeding should be permanently stayed. MCI immediately filed a new action on the same terms but with a different solicitor acting on behalf of the firm. Shares in TWE are trading up 2.33 per cent at $4.83.
Online accounting software company Xero Limited
(ASX:XRO) has released a note to shareholders trumpeting the companys successful year. The business has seen revenue grow by 80 per cent and has increased staff more than 70 per cent to over 1,000 people. The company has invested significantly in its cloud based platform and is focussed on growing its business in Australia and the UK. Xero also disclosed that it has extended the repayment dates on loans enabling two key executives to purchase shares in the company. Xero is yet to turn a profit and has seen its share price in steady decline for most of 2014. Shares in Xero are trading 2.88 per cent higher at $14.99.
Best and worst perfomers
The best performing sector is staples, gaining 0.1 per cent to 9,190. As we heard shares in Treasury Wine Estates have risen 2.33 per cent to $4.83. Shares in Bega Cheese and Graincorp are also stronger.
The worst performing sector is energy, falling 1.9 per cent to 11,633. Shares in Sundance Energy have fallen 12.62 per cent, trading at $0.45. Shares in Senex Energy and Liquefied Natural Gas are also lower.
Gold and the dollar
Gold is trading at $US1,176 an ounce.
The Australian dollar is buying 81.23 US cents.
