The Australian share market dropped 1 per cent at open as investors returned from a long Easter weekend and responded to a disappointing US jobs report and rising Chinese inflation. All sectors are trading in the red, weighed down by health, energy and retail stocks but have regained some ground to be 0.7 per cent lower at noon.
The S&P/ASX 200 index has shed 30 points and is 4,290. On the futures market the SPI is 35 points down.
Economic news
Australia’s construction industry has contracted for the 22nd straight month. The Australian Industry Group and Housing Industry Association’s performance of construction index added 0.6 points to 36.2 in March, remaining under the 50 level that separates expansion from contraction.
ANZ Banking Group
(ASX:ANZ) job advertisements survey has shown job ads increased for a third straight month. Total job ads on the internet and in major metropolitan newspapers were up 1 per cent in March after an increase of 3.3 per cent the month before.
National Australia Bank Limited’s
(ASX:NAB) business survey has shown business confidence rose 2 points to +3 in March, but still remained under the long-term average of +6 points.
Company news
Energy Resources of Australia Limited
(ASX:ERA) boosted its full year production guidance for uranium oxide. The Rio Tinto Limited
(ASX:RIO)-controlled uranium miner now expects to produce between 3,200 and 3,700 tonnes of uranium oxide in this year. However the company has warned annual production still remains highly dependent on weather conditions. Shares in Energy Resources of Australia are trading 1.19 per cent higher at $1.275.
Woodside Petroleum Limited
(ASX:WPL) has pushed back the deadline to make a final investment decision on its Browse LNG development in Western Australia's Kimberley region. The oil and gas producer was expected to make a decision mid this year but will now make a decision on the $40 billion project in the first half of next year. Woodside says the extension will enable it to better evaluate front-end engineering and design work outcomes and tender processes for the development’s major contracts. Shares in Woodside Petroleum are trading 2.22 per cent lower at $34.40.
Best and worst performers
All sectors have lost value: The sector with the smallest losses is Telco Services losing 0.12 points to 1,152. Shares in BigAir Group Limited
(ASX:BGL) have risen 2.63 per cent and trading at $0.39. Shares in Telecom Corporation of New Zealand
(ASX:TEL) are higher while shares in EFTel Limited
(ASX:EFT) are flat.
The worst performing sector is Health Care, falling 170 points to 8,660. Shares in CSL Limited
(ASX:CSL) have fallen 2.45 per cent, trading at $35.51. Shares in Starpharma Holdings Limited
(ASX:SPL) and Cochlear Limited
(ASX:COH) are also lower.
New Zealand
The NZSX50 is 8 points lower at noon. Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 0.21 per cent at $2.43, followed by Westpac, Fletcher Building and AMP.
Gold and the dollar
Gold is trading at $US1,647 an ounce.
The Australian dollar is buying $US1.0316.
