Following weak leads from European markets and no direction from the Wall St, closed for a public holiday, the Australian share market dipped lower on open and is 0.17 per cent down at noon. CBA is weighing on the market as it trades ex-dividend with investors also hitting the sell button on earnings disappointments from Seek, GWA Group and ANZ.
The S&P/ASX 200 index is 10 points lower at 5,879. On the futures market the SPI is 13 points higher.
Economic news
The RBA has released minutes from its February meeting where it cut interest rates by a quarter of a per cent. The RBA said a lower exchange rate was needed to achieve balanced economic growth. The meeting also revealed that the Central Bank would be carefully monitoring developments in the housing markets and that the interest rate was considered necessary to support demand as inflation was still within the target range.
Company news
GWA Group Limited
(ASX:GWA) has posted a first half loss of $12.8 million on the back of one-off charges based around it’s restructure. The bathroom and household fittings supplier closed down its manufacturing facility in Sydney resulting in 88 redundancies. The company expects second half performance to rebound strongly on the back of growth in the home construction sector but downgraded full year revenue guidance from $85 million to $70 million. Shares in GWA Group have been hit hard by the result sliding 10.34 per cent to $2.60.
Packaging company Amcor Limited
(ASX:AMC) has boosted first half profit by 6.7 per cent to US$321.3 million and announced a US$500 million on market share buyback. CEO Ken MacKenzie says strong growth in emerging markets and acquisitions helped the bottom line and announced a 25 per cent lift in the Australian dividend payout of 24.4 cents. The outlook is for further growth through both organic means and M&A. Shares in Amcor are trading 2.88 per cent stronger at $13.56.
Best and worst performers
The best performing sector is consumer staples, gaining 0.9 per cent to 9,843. Shares in Coca Cola Amatil have risen 5.11 per cent and are trading at $10.49 despite a drop in full year revenue. Shares in Metcash and Wesfarmers are also stronger.
The worst performing sector is industrials down 1 per cent to 4,442. Shares in GWA Group have fallen over 10 per cent, trading at $2.60. Shares in Seek and Downer EDI are also lower.
Gold and the dollar
Gold is trading at $US1,233 an ounce.
The Australian dollar is buying 77.77 US cents.
