The Australian share market followed Wall Street sharply lower at open and is 0.4 per cent down at noon, having lifted itself off its morning low as the biggest earnings day of the current reporting season takes shape. Healthcare stocks are leading the way at the moment, with Ansell and Sonic healthcare both performing strongly on the back of profit lifts.
The S&P/ASX 200 index is 12 points down at 5,100. On the futures market the SPI is 10 points lower.
Economic news
The Reserve Bank of Australia has released its August board meeting minutes today, refusing to close the door on further rate cuts. According to the minutes:
“The RBA should neither close off the possibility of reducing rates further, nor signal an imminent intention to reduce rates further, and the course of the exchange rate would be important in setting policy.”
Company news
Construction contractor Macmahon Holdings Limited
(ASX:MAH) shares have taken a 17.14 per cent dive after it swung to a $29.5 million full year loss and tipped a steep revenue fall in the year ahead.
Materials company Arrium Limited
(ASX:ARI) shares are 12.18 per cent higher despite slumping to a $694.7 million full year loss on the back of over $1 billion in impairment and restructuring costs, with investors warming to forecasts of significant earnings growth and ongoing demand from China in fiscal 2014.
Oil and gas explorer Oil Search Limited
(ASX:OSH) shares have edged 1.82 per cent higher after posting a 5.6 per cent increase in its first half net profit of $US113.5 million, driven by lower exploration and tax expenses, and reaffirming its full year production guidance.
Diversified resources services company Monadelphous Group Limited
(ASX:MND) shares have slipped 4.46 per cent in early trade after saying a contract surge that drove profits in fiscal 2013 is unlikely to continue in the current financial year. Monadelphous posted a 14 per cent rise in its full year profit of $156.31 million.
Best and worst performers The best performing sector is Healthcare gaining 169 points to 13,582. Stocks driving it up at the moment are Ansell Limited
(ASX:ANN) which have risen 5.91 per cent and are trading at $19.54. Shares in Sonic Healthcare Limited
(ASX:SHL) and ResMed Inc. (CHESS)
(ASX:RMD) are also stronger.
The worst performing sector is Consumer Staples, falling 160 points to 9,671. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have fallen 3.92 per cent, trading at $12.24. Shares in Wesfarmers Limited
(ASX:WES) and Treasury Wine Estates Limited
(ASX:TWE) are also lower.
Gold and the dollar
Gold is trading at $US1,368 an ounce and the Australian dollar is buying $US0.9091.
