Despite positive leads the Australian share market dropped at open and is 0.9 per cent lower at noon. Concerns about Greece’s debt burden are weighing on sentiment as the Reserve Bank stays in focus.
Most economists expect the RBA will keep the key cash rate at a record low of 2 per cent this afternoon. Ahead of the announcement the Australian dollar has stayed at a seven-week low, briefly slipping under $US0.76.
Figures
The S&P/ASX 200 index has dropped 50 points to 5,686. On the futures market the SPI is 42 points lower.
Company news
IOOF Holdings Limited
(ASX:IFL) has sold two Perennial investment management boutiques to Henderson Group plc
(ASX:HGG). The deal is for an upfront consideration of $71.6 million with extra payments based on future performance. IOOF says the divestment will allow it to concentrate on its core advice, superannuation, multi-manager and trustee business. The deal is expected to be tied up in the fourth quarter of this year. Shares in IOOF Holdings have fallen 0.93 per cent and are trading at $10.71.
Cleaning and services company Spotless Group Holdings Limited
(ASX:SPO) has inked a conditional deal to buy Utility Services Group. The group provides retail meter reading and utilities installation services and has annual service revenues of more than $200 million. While the cost of the purchase has not been disclosed the deal is expected to be tied up by next month. Shares in Spotless Group Holdings have fallen 0.93 per cent and are trading at $2.13.
Best and worst performers
All sectors are trading lower : The sector with the smallest losses is health care, easing 0.02 per cent to 18,999. Shares in Mesoblast Limited
(ASX:MSB) have risen 3.01 per cent and trading at $3.94. Shares in Fisher & Paykel Healthcare Corporation Limited
(ASX:FPH) and CSL Limited
(ASX:CSL) are also stronger.
The worst performing sector is real estate investment trusts, falling 1.4 per cent to 1,294. Shares in DEXUS Property Group
(ASX:DXS) have retreated 2.32 per cent, trading at $7.79. Shares in Goodman Group
(ASX:GMG) and Abacus Property Group
(ASX:ABP) are also lower.
Gold and the dollar
Gold is buying $US1,189 an ounce.
The Australian dollar is buying $US0.7635.
