Despite positive leads the Australian share market has retreated 0.5 per cent following weak economic news and lower commodity prices. Strength among health and tech stocks is being offset by declines in the energy and mining sectors.
Figures
The S&P/ASX 200 index has retreated 32 points to 5,872. On the futures market the SPI is 32 points lower.
Economic news
Australia’s construction activity has remained in contraction territory for the fourth consecutive month. The Australian Industry Group (AIG) and Housing Industry Association's(HIA) Performance of Construction Index dropped 2 points to 43.9 in February. The 50 point level separates expansion from contraction. AIG says, "While house building is retreating from relatively healthy levels it is no longer offsetting the well-entrenched decline in mining-related engineering construction activity.”
Company news
Shares in Lend Lease Group
(ASX:LLC) have risen after lodging revised concept plans for its $6 billion Barangaroo development in Sydney.The property developer says it is progressing the delivery of the precinct with its partners Crown Resorts Limited
(ASX:CWN) and the New South Wales Government. Moving to the next stage of documentation advances James Packer’s ambitions to build a six-star resort and casino on the harbour foreshore.Shares in Lend Lease Group have risen 1.39 per cent and are trading at $16.73 at noon.
After the price of gold fell overnight shares in Regis Resources Limited
(ASX:RRL) have plunged following an operating update. The gold mining company posted lower than expected March quarter production and forecast annual output will come in at lower end of its guidance range. Regis has also advised it has negotiated a restructure of its debt with Macquarie Bank. Shares in Regis Resources have plunged 19.9 per cent and are trading at $1.53 at noon.
Best and worst performers
Most sectors are trading lower: The best performing sector is health care, gaining 0.6 per cent to 19,340. Shares in ResMed Inc.
(ASX:RMD) have risen 2.77 per cent and trading at $8.54. Shares in Sirtex Medical Limited
(ASX:SRX) and CSL Limited
(ASX:CSL) are also stronger.
The worst performing sector is materials, falling 1.4 per cent to 9,520. Shares in Regis Resources Limited
(ASX:RRL) have plunged 19.9 per cent, trading at $1.53. Shares in Atlas Iron Limited
(ASX:AGO) and Sandfire Resources NL
(ASX:SFR) are also lower.
Gold and the dollar
Gold is buying $US1,200 an ounce.
The Australian dollar is buying $US0.7782.
