Weak leads have weighed on the Australian share market, pushing stocks lower at open and down 0.6 per cent at noon. US stocks were dragged down by a disappointing read on employment ahead of the nation’s monthly jobs reports due later this week. At home, local energy and mining stocks have tumbled after commodity prices softened overnight.
The S&P/ASX 200 index has fallen 30 points and is sitting at 4,928. On the futures market the SPI is 25 points lower.
Economic news Growth in Australia's services sector has improved but still remain in contraction territory. Australian Industry Group and Commonwealth Bank of Australia’s
(ASX:CBA) performance of services index gained 1.1 points to 49.6 points in March but remained below 50 which is the level separating contraction from expansion.
Company news Billabong International Limited
(ASX:BBG) has indefinitely suspended its shares so that it may continue takeover talks with its two suitors, Sycamore Partners Management and VF Corporation together with Altamont Capital.
Both suitors have offered the troubled surfwear retailer $1.10 per share but speculation has been circulating the offers have since been cut. Private equity firm TPG bid up to $3.30 per Billabong share at the beginning of 2012 and withdrew a lower offer of $1.45 months later. Shares in Billabong International last traded at $0.73 before being placed into a trading halt last month. Shares in Australian Bauxite Limited
(ASX:ABZ) have soared after announcing a deal with a major Chinese aluminium company.
Australian Bauxite says the term sheet agreement with its preferred supportive off-take partner is to fully fund the company’s first two bauxite projects. Both companies have now started an exclusive negotiation and due diligence period to finalise formal agreements. Shares in Australian Bauxite have soared 15 per cent and are trading at $0.23. Best and worst performers The best performing sector is real estate investment trusts adding 3 points to 1,039. Shares in Mirvac Group
(ASX:MGR) have risen 1.99 per cent and trading at $1.67. Shares in DEXUS Property Group
(ASX:DXS) and Commonwealth Property Office Fund
(ASX:CPA) are also stronger.
The worst performing sector is materials, falling 152 points to 9,228. Shares in Silver Lake Resources Limited
(ASX:SLR) have fallen 9.18 per cent, trading at $1.78. Shares in Resolute Mining Limited
(ASX:RSG) and Adelaide Brighton Limited
(ASX:ABC) are also lower.
Gold and the dollar
Gold is trading at $US1,555 an ounce.
The Australian dollar is buying $US1.045.
