Negative offshore leads pushed the Australian share market into the red at open and stocks are down 0.7 per cent at noon. Weaker than expected US earnings and fears Spain could be headed for a recession continue to weigh on sentiment as investors absorb the latest local inflation data.
The S&P/ASX 200 index has retreated 34 points and is sitting at 4,509. On the futures market the SPI is 32 points down.
Economic news
The Australian Bureau of Statistics has reported inflation rose more than forecast in three months to the end of September. The consumer price index has shown an increase of 1.4 per cent in the quarterly headline rate, compared to an increase of 0.5 per cent in the prior quarter. On an annual basis the inflation rate increased 2 per cent in the September quarter, down from an annual rate of a 1.2 per cent increase in the prior quarter.
Company news APA Group
(ASX:APA) has increased its earnings guidance for the full 2013 financial year after acquiring Hastings Diversified Utilities Fund
(ASX:HDF) earlier this month. APA expects to deliver earnings before interest, tax, depreciation and amortisation of up to $670 million, lifting from earlier guidance of up to $550 million. The latest forecast does not include Hastings earnings once the takeover is official and APA expects to update the market when it gathers more information on Hastings’ financials. Shares in APA Group have dipped 0.4 per cent and are trading at $4.96.
Primary Health Care Limited
(ASX:PRY) says it remains on track to deliver growth of between 20 to 25 cents per share in the full 2013 financial year. The health services company expects to achieve earnings before interest, tax, depreciation and amortisation of up to $380 million. Primary Health Care has also stated it believes growing demand for pathology services is expected to continue in the long term. Shares in Primary Health Care have lifted 0.13 per cent and are trading at $3.77.
Best and worst performers All sectors are trading lower: The sector with the smallest losses is health care losing 24 points to 10,530. Shares in ResMed Inc.
(ASX:RMD) have risen 1.15 per cent and trading at $3.95. Shares in CSL Limited
(ASX:CSL) and Ramsay Health Care Limited
(ASX:RHC) are lower.
The worst performing sector is materials, falling 165 points to 10,216. Shares in St. Barbara Limited
(ASX:SBM) have fallen 4.11 per cent, trading at $2.21. Shares in Alumina Limited
(ASX:AWC) and Boral Limited
(ASX:BLD) are also lower.
Gold and the dollar
Gold is trading at $US1,711 an ounce.
The Australian dollar is buying $US1.029.
