Following soft leads from US markets, the Australian share market opened flat but has since lost all momentum and is tracking 0.18 per cent lower at noon. The materials space is being hit the hardest after a drop in the price of commodities overnight and energy stocks are also being sold off ahead of the OPEC meeting this evening. Once again the healthcare space is the shining light, with gains in CSL and Sirtex bouncing back from yesterday’s losses.
The S&P/ASX 200 index is 10 points lower at 5,313. On the futures market the SPI is down 12 points.
Company news Cardno Limited
(ASX:CDD) has announced a fully underwritten capital raising of around $92.5 million. The offer comprises a fully underwritten 1 for 1.07 pro-rata non-renounceable entitlement offer to eligible shareholders at a price of $0.40 per new share. The full proceeds of the offer will be used to reduce Cardno’s debt. Shares in Cardno last traded at $0.93.
Seek Limited
(ASX:SEK) has announced that the Managing Director of Seek Education Joe Powell has resigned and will leave Seek at the beginning of September. During his decade at Seek, Mr Powell was involved in leadership roles for the Seek employment and education businesses, across all facets of the operations. A replacement has yet to be announced. Shares in Seek are trading down 0.96 per cent at $16.05.
Best and worst performers
The best performing sector is Telcos, gaining 0.4 per cent to 2,055. Shares in Vocus Communications have risen 1.18 per cent and trading at $9.41. Shares in Spark NZ and TPG Telecom are also stronger.
The worst performing sector is Materials, falling 0.4 per cent to 7,844. Shares in Alumina have fallen 4.87 per cent, trading at $1.32. Shares in Nufarm and Rio Tinto are also lower.
Gold and the dollar
Gold is trading at $US1,213 an ounce.
The Australian dollar is buying $US0.7268.
