Another horror start to the week for the local share market; with investors panic selling ahead of key economic data to come out of China tomorrow. After falling more than 1.5 per cent at the open, the market has managed to claw back some of those losses and is tracking 0.84 per cent lower at noon. Currently a sea of red across most sectors, with falls in mining giants BHP and Rio Tinto, as well as the big four banks. Gold stocks are bucking the trend, as well as staples following news out of the supermarket heavy-weights Wesfarmers and Woolworths.
The S&P/ASX 200 index is 41 points lower at 4,852. On the futures market the SPI is 31 points lower.
Company news Wesfarmers Limited
(ASX:WES) has entered into an agreement to acquire Homebase from Home Retail Group (LSE:HOME) for $705 million. This follows the announcement last week confirming a conditional offer had been made to acquire Homebase. Homebase is the second largest home improvement and garden retailer in the United Kingdom and Ireland. Shares in Wesfarmers are trading up 3.18 per cent at $40.57.
Woolworths Holdings Limited
(ASX:WOW) has announced that it will pull the plug on its Masters Home Improvement venture. The supermarket giant announced that it will buy back a 33.3 percent interest in the venture held by WDR Delaware Corporation, a subsidiary of US-based Lowe's Companies. Shares in Woolworths are trading 5.38 per cent higher at $23.88.
Best and worst performers
The best performing sector is Staples, gaining 3 per cent to 8,444. Shares in Woolworths have risen 5.38 per cent and trading at $23.88. Shares in Wesfarmers and Metcash are also stronger.
The worst performing sector is Energy, falling 3.4 per cent to 7,038. Shares in Whitehaven have fallen 8.16 per cent, trading at $0.45. Shares in Santos and LNG are also lower.
Gold and the dollar
Gold is trading at $US1,091 an ounce.
The Australian dollar is buying $US0.6858.
