Despite China’s fourth rate hike since October the local bourse opened higher but has since slipped, pulled down by losses in the industrials and consumer discretionary sectors. Following a flat finish on Wall St and mainly flat leads, the Australian share market is slightly lower at midday.
The S&P/ASX200 index has lost 7 points and is 4,894 at noon. On the futures market the SPI is 13 points lower.
Company news: Australia’s Takeovers Panel has today ruled against Regent Pacific Group's withdrawal of its $345 million takeover of junior iron ore miner BC Iron Ltd (ASX:BCI). BC Iron said last month that it will challenge the decision from its shareholder to abandon the bid and appealed to the Takeover’s Panel to intervene. Australia's takeovers regulator has now declared that Regent Pacific action was done in unacceptable circumstances as the market was not entirely informed. Shares in BC Iron have entered into a trading halt as it prepares a response, and last traded at $2.56.
Ausdrill Ltd (ASX:ASL) has announced an institutional placement and share purchase plan to raise funds for the purchase of plant and equipment for new projects. The drilling and contract mining company will undertake a $129.5 million placement to institutional and sophisticated investors, with shares priced at $3.50 each. A share purchase plan to retail shareholders is expected to raise an additional $20 million. Shares in Ausdrill have entered into a trading halt pending the completion of the capital raising and last traded at $3.85.
Best and worst performers: The best performing sector is Health Care, lifting 89 points to 8,997. Shares in Sonic Healthcare have gained 2.21 per cent and trading at $12.01. Shares in Ramsay Healthcare and CSL have also improved at midday. The worst performing sector is Industrials falling 29 points to 3,776. Shares in Qantas Airways have dropped 1.79 per cent to $2.19. Shares in Asciano Group and Leighton Holdings are also lower at noon.
New Zealand: The NZSX50 has fallen 15 points. Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 0.64 per cent at $9.35 followed by Telecom Corporation of New Zealand, ANZ and AMP.
Gold and the dollar: Gold is trading at $US1452 an ounce and the Aussie dollar is buying $US1.0338 cents.
