Dismissing yesterday’s stellar 1.5 per cent gain the Australian share market is down 0.4 per cent at noon. The broader bourse shrugged off positive offshore leads and headed south at open, despite a fresh record high on the Dow Jones on the back of well received Chinese economic figures yesterday. Most sectors are now trading in the red but the miners are defying the trend and surging ahead.
The S&P/ASX 200 index has dipped 18 points and is sitting at 4,959. On the futures market the SPI is 13 points lower.
Economic news Consumer sentiment has pulled back after reaching a two year high in March 2013. Westpac Banking Corporation
(ASX:WBC) and the Melbourne Institute’s Index of Consumer Sentiment fell 5.1 per cent to 104.9 in April – but still remained above 100 which reflects more consumers are optimistic than pessimistic.
Company news Shares in Billabong International Limited
(ASX:BBG) have sunk after exiting a trading halt and revealing a bid to buy the troubled surfwear retailer has been slashed to $287 million.
Billabong says its former US head Paul Naude and private equity firm Sycamore Partners have now offered a conditional 60 cents per share. The offer is down from $1.10 which was matched from a consortium including Altamont Capital Partners and VF Corporation ahead of Billabong entering the trading halt last week. Shares in Billabong International have sunk 26.03 per cent and are trading at $0.54.
Wesfarmers Limited
(ASX:WES) owned supermarket chain Coles has struck two new milk supply deals for its private label products.
Coles says the contracts are with farmer-owned Australian dairy processors Devondale and Norco and will cover Coles Brand milk supply in New South Wales, south east Queensland and Victoria. The announcement comes ahead of an expected review into milk pricing from the Australian Competition and Consumer Commission. Shares in Wesfarmers have fallen 1.28 per cent and are trading at $39.97.
Best and worst performers The best performing sector is materials gaining 162 points to 9,719. Shares in Mount Gibson Iron Limited
(ASX:MGX) have risen 5.24 per cent and trading at $0.55. Shares in OZ Minerals Limited
(ASX:OZL) and Atlas Iron Limited
(ASX:AGO) are also stronger.
The worst performing sector is health care falling 183 points to 12,131. Shares in CSL Limited
(ASX:CSL) have fallen 1.97 per cent, trading at $57.20. Shares in Sirtex Medical Limited
(ASX:SRX) and Ramsay Health Care Limited
(ASX:RHC) are also lower.
Gold and the dollar
Gold is trading at $US1,585 an ounce.
The Australian dollar is buying $US1.048.
