Despite a positive lead from Wall Street the Australian share market has sunk 1.3 per cent at noon. While US equity markets closed higher following the US Federal Reserve’s meeting Aussie traders have turned bearish. All sectors are in the red with financial stocks accelerating losses and miners struggling after more falls in the iron ore price.
Figures
The S&P/ASX 200 index has sunk 75 points to 5,520. On the futures market the SPI is 8 points lower.
Company news
TFS Corporation Limited
(ASX:TFC) has entered into agreements to buy its US based pharmaceutical partners for a minimum price of $US23.4 million. The sandalwood product supplier says the acquisitions are aiming to capture downstream revenues from product sales. CEO Frank Wilson expects the purchase to significantly enhance TFS’ earnings through capturing all future product earnings including product royalties and licence fees. Shares in TFS Corporation are trading 0.56 per cent higher at $1.78.
Cash Converters International Limited
(ASX:CCV) is set to pay $20 million to settle a class action and pay legal costs capped at $3 million. The class action is made up of borrowers in New South Wales who took loans from the company’s subsidiaries and franchisees from 2010 to 2013. Cash Converters says the total cost will be expensed in the current financial year and is deductable for tax purposes. Shares in Cash Converters are trading 2.21 per cent lower at $0.67.
Best and worst performers
All sectors are trading lower: The sector with the fewest falls energy, easing 0.3 per cent to 11,379. Shares in Caltex Australia Limited
(ASX:CTX) have risen 3.09 per cent and trading at $32.22. Shares in Santos Limited
(ASX:STO) and Drillsearch Energy Limited
(ASX:DLS) are also stronger.
The worst performing sector is consumer staples, falling 2 per cent to 8,466. Shares in Treasury Wine Estates Limited
(ASX:TWE) have dropped 2.4 per cent, trading at $4.88. Shares in Wesfarmers Limited
(ASX:WES) and Coca-Cola Amatil Limited
(ASX:CCL) are also lower.
Gold and the dollar
Gold is buying $US1,187 an ounce.
The Australian dollar is buying $US0.7736.
