Following negative leads the Australian share market has sunk 1.5 per cent into the new week and month. Ahead of tomorrow’s Reserve Bank of Australia (RBA) interest rate decision economic data has been in focus.
Australia’s annual rate of inflation has stayed at 1.4 per cent in May, remaining under the RBA’s target of between 2-3 per cent, and keeping the door open for another rate cut. In the housing sector home prices in Australia's capital cities have slipped for the first time in six months, falling 0.9 per cent last month.
Across the local manufacturing sector activity has expanded for the first time in six months in May, aided by a weaker Australian dollar. In China the nation’s factory activity has risen for the third straight month but fallen short of expectations.
Figures
The S&P/ASX 200 index has dropped 85 points to 5,692. On the futures market the SPI is 82 points lower.
Company news
Shares in Sirtex Medical Limited
(ASX:SRX) have soared after releasing a positive update on its liver cancer medication Sirflox. Following a presentation and peer review process the drug developer says Sirflox results have been confirmed as both statistically significant and clinically meaningful in the liver. Sirtex also advised the results have been well accepted by oncology experts and feedback has been positive. Shares in Sirtex Medical have soared 13.01 per cent and are trading at $30.15 at noon.
Shares in Vocation Limited
(ASX:VET) have fallen after issuing a warning on its annual earnings while outlining its turnaround plan. The education and training company expects to report underlying earnings ranging from a profit of $3 million to a net loss of $3 million. The guidance comes after Vocation last year reported earnings of $36 million and following a number of recent divestments in a bid to reshape the business. Shares in Vocation have fallen 9.26 per cent and are trading at $0.12.
Best and worst performers
All sectors are trading in the red: The sector with the fewest falls is energy, easing 0.5 per cent to 11,755. Shares in Paladin Energy Limited
(ASX:PDN) have risen 1.59 per cent and trading at $0.32. Shares in Sundance Energy Australia Limited
(ASX:SEA) and Santos Limited
(ASX:STO) are also stronger.
The worst performing sector is consumer staples, dropping 1.9 per cent to 8,938. Shares in Wesfarmers Limited
(ASX:WES) have fallen 2.24 per cent, trading at $42.67. Shares in Treasury Wine Estates Limited
(ASX:TWE) and Asaleo Care Limited
(ASX:AHY) are also lower.
Gold and the dollar
Gold is buying $US1,190 an ounce.
The Australian dollar is buying $US0.7645.
Thank you for watching the Market at Midday on Monday 1 June. I’m Lelde Smits for the Finance News Network.
