Backflipping from a positive open the Australian share market has slipped into the red at noon. The last day of the week, month and financial year is seeing high volume trade as investors look to lock in their positions.
Across the sectors the miners are weak after commodity prices dropped overnight and gold sank under $US1,200 for the first time in almost three years.
The Australian dollar has also retreated from yesterday’s local close of 93.15 US cents ahead of next week’s Reserve Bank of Australia (RBA) interest rate decision.
Figures
The S&P/ASX 200 index has dipped 3 points and is sitting at 4,809 - but is still on track for a weekly gain. On the futures market the SPI is 4 points higher.
Economic news
Power demand is poised to fall, according to The Australian Energy Market Operator. The energy market operator’s National Electricity Forecasting Report expects energy demand to fall by 2.4 per cent in the next financial year on the back of increased energy efficient measures, solar panels and mining and industrial project delays.
Company news
National Australia Bank Limited
(ASX:NAB) has forecast the Australian dollar will continue to drop against the US dollar. The bank sees our local currency at 88 US cents by the end of 2013 and just 83 US cents by the end of 2014.
Woodside Petroleum Limited
(ASX:WPL) is heading to the Porcupine Basin off Ireland to extend its global exploration strategy. The oil and gas producer has inked two deals to farm-in to multiple offshore blocks.
Shares in Caltex Australia Limited
(ASX:CTX) have sunk 11.92 per cent after issuing a worse than expected first half profit warning. The oil refiner has blamed the guidance on a falling Australian dollar and recent pipeline outage.
Shares in Greencross Limited
(ASX:GXL) have lifted 1.49 per cent after scoring its second acquisition in a week. The veterinary services provider has bought the Armidale Vet Hospital in New South Wales for $625,000.
Best and worst performers The best performing sector is real estate investment trusts gaining 10 points to 1,030. Shares in Federation Centres Limited
(ASX:FDC) have risen 2.65 per cent and trading at $2.32. Shares in DEXUS Property Group
(ASX:DXS) and Goodman Group
(ASX:GMG) are also stronger.
The worst performing sector is materials, falling 83 points to 8,422. Shares in CuDeco Limited
(ASX:CDU) have fallen 8.85 per cent, trading at $2.06. Shares in Kingsgate Consolidated Limited
(ASX:KCN) and Northern Star Resources Limited
(ASX:NST) are also lower.
Gold and the dollar
Gold is trading at $US1,189 an ounce.
The Australian dollar is buying 92.39 US cents.
