Following soft leads, the Australian share market opened lower and is 0.34 per cent down at noon. Lower commodity prices are sending the miners lower while investors are cautious ahead of reporting season and the latest RBA interest rate decision tomorrow.
The S&P/ASX 200 index is 20 points down at 5,679. On the futures market the SPI is 34 points lower.
Economic news
The CoreLogic RP Data Home Value Index shows house prices have leapt 2.8 per cent in July and 11.1 per cent over the past 12 months. Sydney and Melbourne continue to be standout performers with Melbourne growth outpacing Sydney in the last quarter up 6.1 per cent in the 3 months compared with a 5.4 per cent gain in Sydney. Perth and Darwin continue to record falls with home values in Darwin down 5.3 per cent over the past year.
Company news
Cash Convertors International
(ASX:CCV) will face a class action for allegedly charging customers interest rates of up to 160 per cent in addition to brokerage fees in Queensland. The company plans to vigorously defend the suit. Shares in Cash Convertors emerged from a trading halt to be down 14.2 per cent to $0.60.
Federation Centres Limited
(ASX:FDC) have confirmed they will sell the Lutwyche City shopping centre to Abacus Property Group and Zenonos Group for $65 million. The sale price is a 13.5 per cent premium to book value with settlement expected late October subject to FIRB approval. Shares in Federation Centres are trading 0.17 per cent higher at $3.00.
Best and worst performers
The best performing sector is real estate investment trusts, gaining 0.6 per cent to 1,314. Shares in SCA Property Group have risen 2.1 per cent and trading at $2.19. Shares in IOOF Holdings and Charter Hall are also stronger.
The worst performing sector is energy, falling 1.1 per cent to 10,850. Shares in AWE have fallen 3.57 per cent, trading at $1.22. Shares in Beach Energy and Oil Search are also lower.
Gold and the dollar
Gold is trading at $US1,093 an ounce.
The Australian dollar is buying 73.00 US cents.
