Following two days of heavy losses and negative offshore leads, the Australian share market opened slightly higher with stronger commodity prices buoying the miners. However, after a the release of a weak report card on consumer confidence in Australia the local bourse is back in the red and trading in a narrow range.
The S&P/ASX200 index has slipped 7 points and is 4,489 at noon. On the futures market the SPI is flat.
Economic news
Westpac and the Melbourne Institute’s Index of Consumer Sentiment has sunk to its lowest level in more than two years. The index dropped 8.3 per cent to 92.8 in the month of July and is almost 18 per cent lower than the year before. 100 is the level that separates the proportion of pessimists from optimists.
Company news
Energy Resources of Australia Limited (ASX:ERA) says it expects to increase its full year uranium oxide production by 8.3 per cent to 2,600 tonnes. Significant rains in the Northern Territory forced the suspension of the Ranger mine earlier this year, cutting production by 90 per cent in the second quarter. Shares in Energy Resources of Australia have added 1.72 per cent and are trading at $4.13.
Minara Resources Limited (ASX:MRE) has warned nickel production could fall by as much as 22 per cent as a result of a technical failure at its Murrin Murrin nickel plant last month. While operations at the plant have now restarted, Minara says full year production guidance has now been downgraded from up to 37,000 tonnes to between 29,000 tonnes and 32,000 tonnes. Shares in Minara Resources have lost 2.1 per cent and are trading at $0.70.
Sectors
The best performing sector is Health Care, gaining 93 points to 8,342. Shares in Biota Holdings have added 1.55 per cent and trading at $0.985. Shares in CSL and Cochlear are also higher at noon. The worst performing sector is Consumer Discretionary losing 12 points to 1,318. Shares in News Corporation have dropped 2.44 per cent and trading at $14.82. Shares in Harvey Norman Holdings and JB HiFi are also weaker at noon.
New Zealand
The NZSX50 is 4 points lower. Taking a look at the top four stocks by turnover, Ryman Healthcare is at the top of the list with stock down 3.62 per cent at $2.66 followed by Telecom Corporation of New Zealand, Fletcher Building and ANZ.
Gold and the dollar
Gold is trading at $US1,566 an ounce and the Australian dollar is buying $US1.0599 cents.
