Following soft offshore leads, the Australian share market opened slightly lower and is flat at noon, with financial stocks weighing on the market in morning trade.
The S&P/ASX 200 index is 5 points up at 5,068. On the futures market the SPI is 6 points higher.
Economic news
The Reserve Bank of Australia says it will wait to see how recent interest rate cuts flow through the economy before making a decision on whether to cut the cash rate again this year. The Central Bank says in the minutes from its February board meeting there are signs the 1.75 percentage points in interest rate cuts delivered between November 2011 and December last year are starting to provide a boost to underperforming sectors such as housing.
Company news
Sonic Healthcare Limited
(ASX:SHL) shares have slipped in early trade despite a 5.4 per cent lift in its first half net profit of $155.5 million.
The pathology and radiology provider has cautioned its annual earnings will be at the lower end of forecasts amid fee changes and cuts in Germany and the US as well as impacts from Superstorm Sandy. Shares in Sonic Healthcare are trading down 8.01 per cent at $12.93.
Coca-Cola Amatil Limited’s
(ASX:CCL) annual net profit has fallen 22 per cent to $459.9 million, impacted by weak consumer spending and the high Australian dollar. The result included $98.5 million in write downs relating to its SPC Ardmona business. Managing Director Terry Davis says volume and earnings in the company’s Australian business was solid in a difficult trading environment. Shares in Coca-Cola Amatil are trading up 2.13 per cent at $13.92.
Best and worst performers The best performing sector is Real Estate Investment Trusts gaining 8 points to 1,011. Shares in Mirvac Group
(ASX:MGR) have risen 2.1 per cent and trading at $1.58. Shares in Westfield Retail Trust
(ASX:WRT) and GPT Group
(ASX:GPT)are also stronger.
The worst performing sector is Financials excluding Real Estate Investment Trusts, falling 16 points to 6,173. Shares in QBE Insurance Group Limited
(ASX:QBE) have fallen 2.16 per cent, trading at $13.36. Shares in Westpac Banking Corporation
(ASX:WBC) and National Australia Bank Limited
(ASX:NAB)are also lower.
Gold and the dollar
Gold is trading at $US1,613 an ounce and the Australian dollar is buying $US1.031.
