Soft leads positioned the Australian share market for a fall at open and the benchmark index is 0.5 per cent down at noon despite a surprisingly strong read on consumer confidence. Lower commodity prices have crunched the energy and mining sectors to the worst performers as BHP Billiton Limited
(ASX:BHP) continues to extend this week’s declines.
Figures
The S&P/ASX 200 index has retreated 28 points to 5,588. On the futures market the SPI is 25 points lower.
Economic news
Consumer confidence has surged to its highest point in over a year following the Reserve Bank's decision to cut rates to a record low and the release of the Federal Budget. The Westpac-Melbourne Institute consumer sentiment index increased 6.4 per cent to 102.4 points in May, reflecting more optimists than pessimists.
Company news
Sydney Airport Limited
(ASX:SYD) has reached a record of more than 4.5 million international passengers in the year to date on the back of growth from Asian travellers. The owner of Sydney Airport reports international traffic grew 2.9 per cent while domestic traffic increased 1.7 per cent over the same period. CEO and Managing Director Kerrie Mather has praised the Australian government’s promotion of Sydney and New South Wales in China. Shares in Sydney Airport have lifted 1.72 per cent and are trading at $5.32 at noon.
Boral Limited
(ASX:BLD) has appointed Brian Clark as its new Chairman, replacing Bob Every at the company's annual general meeting in November. The building products manufacturer advises Mr Clark joined its board in 2007 and has been the Chairman of Boral’s remuneration and nomination committee since 2009. Mr Clark is also a director of wealth management company AMP Limited
(ASX:AMP) and Chairman of AMP Capital. Shares in Boral have risen 0.72 per cent and are trading at $6.33 at noon.
Best and worst performers
The best performing sector is health care, gaining 1.5 per cent to 18,439. Shares in Cochlear Limited
(ASX:COH) have risen 4.76 per cent and trading at $82.92. Shares in Sirtex Medical Limited
(ASX:SRX) and Japara Healthcare Limited
(ASX:JHC) are also stronger.
The worst performing sector is materials, falling 2.2 per cent to 9,193. Shares in Arrium Limited
(ASX:ARI) have dropped 8.33 per cent, trading at $0.17. Shares in Fortescue Metals Group Limited
(ASX:FMG) and Western Areas Limited
(ASX:WSA) are also lower.
Gold and the dollar
Gold is buying $US1,209 an ounce.
The Australian dollar is buying $US0.7925.
