The local market has headed lower on open today and after some shallow movement it’s trading flat at midday.
Poor leads from Wall Street combined with uncertainty about the direction of next week’s interest rate call from the RBA.
While the dip wasn’t as severe as has been seen over the past few days, the market was pulled down by the healthcare sector and while the banks are still showing weakness their drag is not as strong today.
There was support from the big miners which have gained despite a further fall in the iron ore price overnight.
The S&P/ASX 200 index is 3 points up at 5,793. On the futures market the SPI is 18 points higher.
Economic news
The Australian Industry Group says the manufacturing industry remains in decline for the fifth month straight as it shows its Performance of Manufacturing index for April is still below the 50 point mark above which represents expansion.
Company news
Virgin Australia Holdings Limited
(ASX:VAH) has seen its third quarter loss improve on the same period last year with the underlying figure coming in at $22.2 million. The airline says it’s seen positive yield growth for both the group and domestically, but restructuring and transactions costs were incurred of $17.8 million. Shares in Virgin are trading down 0.98 per cent at $0.51.
Yellow Brick Road Holdings Limited
(ASX:YBR) has seen its shares jump more than 6 per cent as it responds to media speculation about a potential acquisition. The financial services company concedes it often has discussions with many parties but stresses no agreements have been entered into which would require disclosure. Shares in YBR are trading up 6.48 per cent at $0.58.
Best and worst performers The best performing sector is materials, gaining 1.4 per cent to 9,463. Shares in Fortescue Metals Group Limited
(ASX:FMG) have risen 6.91 per cent and trading at $2.32. Shares in Alumina Limited
(ASX:AWC) and BlueScope Steel Limited
(ASX:BSL) are also stronger.
The worst performing sector is healthcare, falling 1 per cent to 18,424. Shares in Estia Health Limited
(ASX:EHE) have fallen 2.16 per cent, trading at $5.88. Shares in Regis Healthcare Limited
(ASX:REG) and Sirtex Medical Limited
(ASX:SRX) are also lower.
Gold and the dollar
Gold is trading at $US1,185 an ounce.
The Australian dollar is buying $US0.7896.
