The Australian share market has retreated from last weeks highs and is 0.7 per cent down at noon following mostly negative offshore leads, including declines on Wall Street on the back of disappointing earnings reports.
The S&P/ASX 200 indexis 36 points down at 4,535. On the futures market the SPI is 37 points lower.
Economic newsThe Federal Government has lowered its projected budget surplus for the 2013 financial year in its mid-year economic fiscal outlook. The expected surplus came down from $1.5 billion to $1.1 billion, while the government plans on savings of $16.4 billion over four years in a bid to return the budget to surplus. Australia’s GDP is forecast to grow at three per cent over the next two financial years, with unemployment expected to remain low and inflation set to ease by 0.25 per cent to 3 per cent.
Company news Medical gloves and condom maker Ansell Limited
(ASX:ANN) says it is on track to lift earnings in the current financial year despite a slowdown in sales. CEO Magnus Nicolin said at the company’s AGM that comparative year-on-year sales results for September had been lower than expected. Mr Nicolin reported that benefits had begun to flow from improvements made to Ansell's new product delivery system but were offset by economic weakness in Europe, the Middle East and Africa. Ansell expects first half earnings would be affected by those factors, however still expects to deliver full year growth similar to the levels seen last financial year. The forecast excludes an expected positive contribution from Comasec, the French protective glove maker Ansell recently bought for $118 million.
Shares in Ansell are trading down 1.30 per cent at $15.95.
Treasury Wine Estates Limited
(ASX:TWE) has lowered its growth expectations for fiscal 2013 after a slow performance in the first quarter. Treasury Wine now expects a 20 per cent drop in first half pre tax earnings, yet is maintaining a positive outlook for the 2014 financial year, owing to an exceptional 2012 wine vintage and a strong increase in non-current inventory. Shares in Treasury Wine Estates are trading down6.73 per cent at $5.13.
Best and worst performersAll sectors are lower so far today, the sector with the smallest losses is Consumer Staples, dropping 9 points to 8,660. Shares in GrainCorp Limited
(ASX:GNC) have risen 40.34 per cent and trading at $12.42. Shares in Goodman Fielder Limited
(ASX:GFF) are stronger while Metcash Limited
(ASX:MTS) shares are down by 0.13 per cent at midday.
The worst performing sector is Healthcare, falling 146 points to 10,593. Shares in Acrux Limited
(ASX:ACR) have fallen 3.55 per cent, trading at $3.53. Shares in Primary Health Care Limited
(ASX:PRY) and ResMed Inc.
(ASX:RMD) are also lower so far today.
Gold and the dollarGold is trading at $US1,721 an ounce and the Australian dollar is buying $US1.032.
