After posting a positive end to July the Australian share market has started the first day of August in the red as investors remain cautious ahead of key central bank meetings.
The S&P/ASX 200 index is trading 8 points lower at 4,261. On the futures market the SPI is currently 9 points lower.
Economic news
House prices rose at a slower pace last month: According to RP Data-Rismark its capital city home price index lifted 0.6 per cent in July after increasing 1 per cent rise the month before. Gains were lead by Sydney and Melbourne but capped by falls in Adelaide, Perth and Brisbane.
Manufacturing activity fell to a three year low last month: According to the Australian Industry Group and PriceWaterhouseCoopers the Australian Performance of Manufacturing Index dropped 6.9 index points to 40.3 in July, coming in below the 50 level which separates expansion from contraction.
Company news Shares in Intrepid Mines Limited
(ASX:IAU) have surged after announcing it has placed 27 million ordinary shares to a prominent Indonesian political and business figure, Surya Paloh. The shares represent about 5 per cent of the company's issued capital and Intrepid advises that Mr Paloh will work closely with the company to enable engagement with key Indonesian stakeholders. Intrepid Mines reported a first half net loss of $30.9 million last week as it battles with ongoing joint venture challenges and legal concerns. Shares in Intrepid Mines Limited have surged 27.27 per cent and are trading at $0.28.
Shares in Alkane Resources Limited
(ASX:ALK) have risen after announcing its Tomingley Gold Project has scored approval from the New South Wales government. Tomingley is a new gold development located near Dubbo in the state's central west and based on three gold deposits. Alkane is aiming to start production in the second half of next year. Shares in Alkane Resources have risen 3.66 per cent and are trading at $0.85.
Best and worst performers The best performing sector is Telco Services gaining 11 points to 1,380. Shares in Telstra Corporation Limited
(ASX:TLS) have risen 0.88 per cent and trading at $4.04. Shares in TPG Telecom Limited
(ASX:TPM) are higher while shares in and Telecom Corporation of New Zealand
(ASX:TEL) are steady at noon.
The worst performing sector is Health Care, falling 56 points to 9,599. Shares in CSL Limited
(ASX:CSL) have fallen 1.12 per cent, trading at $42.22. Shares in Ansell Limited
(ASX:ANN) and ResMed Inc.
(ASX:RMD) are also lower.
Gold and the dollar
Gold is trading at $US1,612 an ounce.
The Australian dollar is buying $US1.047.
