Midday: Aus shares retreat into red

Market Reports

The Australian share market has retreated from the mornings highs and shed 0.5 per cent in the hour before noon. With no economic news scheduled on the local front Europe’s debt woes continue to weigh on sentiment.

The S&P/ASX 200 index has shed 15 points and is 4,041. On the futures market the SPI is 8 points lower.

Company news

Shares in ZYL Limited (ASX:ZYL) surged more than 30 per cent after announcing it will increase its ownership in the Mbila Project and acquire extra anthracite projects. Anthracite is a variety of mineral coal and ZYL says it’s inked deals to boost its exposure in South Africa for a total consideration of $12 million of its shares. The company says the deal consolidates its position within both the South African and international anthracite markets. Shares in ZYL Limited are now trading 23.08 per cent higher at $0.16.

Fisher and Paykel Healthcare Corp Limited (ASX:FPH) has reported a 22 per cent increase in its full year net profit but posted soft operations performance.The dual-listed medical device manufacturer was impacted by a strong New Zealand dollar as it generates more than half of its revenue in US dollars. Fisher and Paykel Healthcare has forecast growth in the year ahead and declared a dividend of 7 cents per share. Shares in Fisher and Paykel Healthcare are trading steady at $1.94.
 
Best and worst performers

The best performing sector is Consumer Discretionary gaining 6 points to 1,245. Shares in David Jones Limited (ASX:DJS) have risen, on speculation the retailer has been tipped for a leveraged buyout, up 3.18 per cent and trading at $2.27. Shares in News Corp (ASX:NWS) and Harvey Norman Holdings Limited (ASX:HVN) are also stronger.

The worst performing sector is Consumer Staples, falling 72 points to 7,638. Shares in Wesfarmers Limited (ASX:WES), have fallen 1.15 per cent, trading at $29.32. Shares in Woolworths Limited (ASX:WOW) and Coca-Cola Amatil Limited (ASX:CCL) are also lower.

Gold and the dollar

Gold is trading at $US1,556 an ounce.
The Australian dollar is buying 97.79 US cents.


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