Following positive US leads, the Australian share market opened 0.22 percent higher higher. Huge gains in herbal remedy maker Blackmores have been unable to offset weak news from retailer Woolworths, pulling the local sharemarket 0.5 percent down at noon.
The S&P/ASX 200 index is 27 points down at 5,308. On the futures market the SPI is 19 points lower.
Economic news
Sales of new homes in Australia fell for a third month this year in September. The Housing Industry Association reported new sales fell by 4 percent from August. HIA economist Diwa Hopkins said increasingly restrictive credit conditions are likely to curtail the boom in new home building.
Company news
Telstra Corporation Limited
(ASX:TLS) has maintained its income and earnings guidance for FY16. Telstra CEO Andrew Penn told investors the company projects mid single digit growth in total income and low single digit growth in EBITDA. Free cash flow is expected to be between $4.6 billion and $5.1 billion. Shares in Telstra Corporation are trading down 0.9 per cent at $5.53.
Woolworths Limited
(ASX:WOW) has warned investors the retailer could see a fall in profit of up to 35 percent for the first half of 2016. Woolworths CEO Grant O’Brien reaffirmed the short-term consequences of the company’s significant investment in price, service and customer experience. The company reported total first quarter sales slipped 2.5 percent to $15.75 billion. Shares in Woolworths are trading down 8.51 per cent at $25.04. \
Best and worst performers
The best performing sector is Utilities, gaining 0.9 per cent to 6,966. Shares in Spark Infrastructure have risen 3.29 per cent and are trading at $2.04. Shares in APA Group and AGL Energy are also stronger.
The worst performing sector is Staples, falling 4.4 per cent to 8,582. Shares in Woolworths have fallen 8.51 per cent, trading at $25.04. Shares in Metcash and Wesfarmers are also lower.
Gold and the dollar
Gold is trading at $US1,159 an ounce.
The Australian dollar is buying $US0.71
