Following mixed global leads the Australian share market has drifted either side of the open and is flat at noon. The gold sub-sector has sunk about 7.5 per cent after the price of the precious metal dropped overnight. Lower commodity prices are also putting pressure on the energy and mining sectors. The financial sector is stronger and tech stocks have jumped after the Nasdaq hit another record closing high on Friday.
Figures
The S&P/ASX 200 index has added 2 points and is trading at 5,672. On the futures market the SPI is 4 points higher.
Company news
Australia's Big Four Banks have begun responding to the Australian Prudential Regulation Authority’s (APRA) decision to increase mortgage capital. The banking regulator will ask the banks to hold more capital in reserve to protect against potential losses from July 1, 2016 giving the banks about one year to secure extra capital. ANZ Banking Group
(ASX:ANZ) says the change will require it to allocate about $2.3 billion of additional capital to its Australian mortgage lending book. Shares in ANZ Banking Group have moved 0.8 per cent higher and are trading at $32.70.
The A2 Milk Company Limited (ASX:A2M, NZX:ATM) has rejected a takeover offer from Freedom Foods Group Limited
(ASX:FNP) and US dairy group Dean Foods Company. The dual-listed milk company says it does not consider the proposal compelling and is evaluating other confidential enquiries indicating interest in the company. The company has also today upgraded its annual revenue guidance and shares in The A2 Milk Company have lifted 0.75 per cent and are trading at $0.67.
Best and worst performers
The sectors are putting in a mixed performance: The best performing sector is health care, gaining 0.3 per cent to 19,146. Shares in Sirtex Medical Limited
(ASX:SRX) have risen 3.72 per cent and trading at $31.76. Shares in Cochlear Limited
(ASX:COH) and Virtus Health Limited
(ASX:VRT) are also stronger.
The worst performing sector is energy, falling 0.5 per cent to 10,929. Shares in Karoon Gas Australia Limited
(ASX:KAR) have fallen 2.5 per cent, trading at $2.35. Shares in Drillsearch Energy Limited
(ASX:DLS) and AWE Limited
(ASX:AWE) are also lower.
Gold and the dollar
Gold is buying $US1,097 an ounce.
The Australian dollar is buying $US0.7365.
