Weighed down by global debt concerns the Australian share market opened lower after receiving negative offshore leads. After the release of the RBA’s latest meeting minutes there was a brief step into positive territory but the local bourse is again slightly lower, pulled down by losses in the banks and property trusts.
The S&P/ASX200 index is flat at 4,472. On the futures market the SPI is flat.
Economic news
The Reserve Bank of Australia has maintained a cautious view on interest rates. Minutes from the central bank’s July 5 board meeting reveal the bank will need to consider more economic data before it making a decision on interest rates, signaling that there is no rush to raise the current rate of 4.75 per cent.
Company news
Investors have bought back into News Corporation (ASX:NWS) this morning amid reports that the media company’s directors are considering replacing its current CEO, 80-year old Rupert Murdoch, with chief operating officer Chase Carey. As the phone hacking crisis escalates the company has grappled to deal with the fall out. Mr Murdoch has already apologised to some of the victims of the phone hacking and is today due to appear before British Parliament to face questions relating to the scandal. Shares in News Corporation have recovered 3.46 per cent today and are trading at $14.65.
Tabcorp Holdings Limited (ASX:TAH) has paid $410 million up front to secure the Victorian Government’s 12-year wagering licence, outbidding the only other bidder Tatts Group Limited (ASX:TTS). Gaming and waging company Tabcorb entered a trading halt this morning, it said, pending an announcement regarding the award of the new wagering and betting licence. Tatts Group has now informed the market that it has not secured the licence and Tabcorb is expected to shortly announce details of the deal. Shares in Tabcorp Holdings last traded at $3.10 before entering into a trading halt.
Sectors
The best performing sector is Energy, gaining 126 points to 14,620. Shares in Metgasgo have added 5.17 per cent and trading at $0.305. Shares in New Cope Corporation and Woodside Petroleum are also higher. The worst performing sector is Real Estate Investment Trusts dropping 4 points to 810. Shares in Stockland have falling 1.88 per cent and trading at $3.14. Shares in Westfield Group and Dexus Property Group are also lower.
New Zealand
The NZSX50 is 8 points down. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock up 0.8 per cent at $2.51 followed by Fletcher Building, Westpac, and Kiwi Income Property Trust.
Gold and the dollar
Gold is trading at $US1,602 an ounce. The Australian dollar is buying $US1.0626 cents.
