Solid offshore leads saw the local market open higher but this soon turned negative and at midday we’re down 0.6 per cent.
The late morning dip was a result of some poor results from the likes of Cochlear which shed more than 12 per cent as well as Dominos which was down around 7 per cent.
The selling comes amid the NAB monthly business survey pointing towards lower reads on both confidence and business conditions; it seems the goodwill from the federal budget has run out of steam.
The S&P/ASX 200 index is 36 points down at 5,474. On the futures market the SPI is 34 points lower.
Company news
Beach Energy Limited
(ASX:BPT) is set to acquire a 40 per cent stake in a Cooper Basin oil permit, from AGL Energy, for some $1.15 million. The oil and gas explorer says the permit is highly prospective and the buy is in-line with company strategy. The deal is subject to government approvals including the appointment of Beach Energy as operator of the ATP 1056 joint venture. Shares in beach are trading down 0.56 per cent at $0.90
Worleyparsons Limited
(ASX:WOR) has flagged a $200 million impairment of goodwill in the run-up to releasing full year results on the 26th of August. The professional services company says the assessment of asset carrying values will have no impact on debt covenants and the impairment represents around 10 per cent of the value of goodwill. Shares in Worley Parsons are trading down 2.3 per cent at $8.49
Best and worst performers The best performing sector is materials, gaining 1.5 per cent to 8,538. Shares in Evolution Mining
(ASX:EVN) have risen 6.77 per cent and trading at $1.02. Shares in Sandfire Resources
(ASX:SFR) and OZ Minerals Limited
(ASX:OZL) are also stronger.
The worst performing sector is health care, falling 2.1 per cent to 18,728. Shares in Cochlear Limited
(ASX:COH) have fallen 12.36 per cent, trading at $78.91. Shares in Sigma Pharmaceutical Limited
(ASX:SIP) and Sonic Healthcare Limited
(ASX:SHL) are also lower.
Gold and the dollar
Gold is trading at $US1,103 an ounce.
The Australian dollar is buying $US0.7383
