The Australian share market heeded weak offshore leads to open softer and is 0.7 per cent down at noon, ahead of the Reserve Bank’s first interest rate decision for 2013 this afternoon. The major banks and miners find themselves in negative territory in early trade.
The S&P/ASX 200 index is 33 points lower at 4,875. On the futures market the SPI is 36 points down.
Economic news
Slowing activity in the mining sector and soft retail sales have seen Australia’s services sector contract for the 12th consecutive month. The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (PSI) rose 2.1 points to 45.3 in January, still below the 50 reading which indicates contraction in the sector.
Company news
International education provider Navitas Limited
(ASX:NVT) has decreased its interim net profit by 1 per cent to $35.1 million, impacted by the long term effects of regulatory and policy change in Australia. The company has declared a fully franked interim dividend of 9.3 cents per share, slightly below last year’s half year shareholder payout. Shares in Navitas are trading down 0.4 per cent at $4.93.
Transfield Services Limited
(ASX:TSE) has signed a contract with Department of Immigration and Citizenship for the provision of operational services at the regional processing centre in Nauru. The contract is valued at approximately $175 million over one year, with an option for a further year’s extension. Shares in Transfield Services are trading up 1.11 per cent at $1.82.
Best and worst performers The best performing sector is Consumer Staples gaining 42 points to 9,332. Shares in Goodman Fielder Limited
(ASX:GFF) have risen 2.61 per cent and trading at $0.69. Shares in Wesfarmers Limited
(ASX:WES) and Treasury Wine Estates Limited
(ASX:TWE) are also stronger.
The worst performing sector is Energy, falling 139 points to 12,922. Shares in Aquila Resources Limited
(ASX:AQA) have fallen 4 per cent, trading at $2.88. Shares in Beach Energy Limited
(ASX:BPT) and Buru Energy Limited
(ASX:BRU) are also lower.
Gold and the dollar
Gold is trading at $US1,674 an ounce and the Australian dollar is buying $US1.045.
