Records on Wall Street helped the local market push higher this morning but gains soon dissolved to see the local market 0.3 per cent lower at noon.
The health care sector has buoyed the local bourse with Resmed and Sigma Pharmaceutical both making gains.
The materials sector headed lower on poor capex data showing a further slowdown in expenditure on plant and equipment.
The S&P/ASX 200 index is 19 points down at 5,706. On the futures market the SPI is 28 points lower.
Economic news
The ABS has reported a dip in capital expenditure figures for the March quarter with total capex down by 4.4 per cent seasonally adjusted.
Company news
Alexium International Group Limited
(ASX:AJX) says its fire retardant treatments have produced results exceeding its customers expectations and could lead to sales in excess of $US1 million per year. The company says its customer is a materials supplier to the US Department of Defence and that it will reveal the name once it has started shipping its fire retardant treatments. Vice President of Research Dr Bob Brookins says the company’s advantage is not only its patented treatments but its ability to treat difficult materials like Lycra and Neoprene. Shares in Alexium are trading up 0.54 per cent at $0.46.
Austal Limited
(ASX:ASB) has secured a deal for a ship planning yard design contract with General Dynamics Bath Iron Works. The aluminium ship builder says tasks will include hull, mechanical and electrical services for independence variant Littoral Combat Ships. The company will do most of the work at its Alabama shipyard with a portion also performed at its centre in San Diego. Shares in Austal are trading up 4.11 per cent at $1.84.
Best and worst performers The best performing sector is health care, gaining 0.3 per cent to 19,000. Shares in ResMed Inc
(ASX:RMD) have risen 1.56 per cent and trading at $7.49. Shares in Sigma Pharmaceutical Limited
(ASX:SIP) and Mayne Pharma Group Limited
(ASX:MYX) are also stronger.
The worst performing sector is materials, falling 0.9 per cent to 9,389. Shares in Newcrest Mining Limited
(ASX:NCM) have fallen 4.02 per cent, trading at $14.10. Shares in BlueScope Steel Limited
(ASX:BSL) and South32 Limited
(ASX:S32) are also lower.
Gold and the dollar
Gold is trading at $US1,189 an ounce.
The Australian dollar is buying $US0.7691
