Midday: ASX hands back early gains

Market Reports

The Australian share market saw a positive start to the week on strong US leads however has fallen flat at noon. Materials stocks are seeing losses ahead of a key reading on Chinese growth due today which may shift sentiment, while the consumer discretionary sector has eked out some small gains to lead the way for the majors. 
 
The S&P/ASX 200 index is 1 point up at 4,975. On the futures market the SPI is 3 points higher. 
 
Economic news
 
The Australian Bureau of Statistics says Business finance commitments lifted by 2.5 per cent to $31.75 billion in May, while personal lending commitments fell by 3.1 per cent to $8.08 billion.
 
Company news
 
AGL Energy Limited (ASX:AGK)  has announced a takeover deal for energy retailer Australian Power & Gas Company Limited (ASX:APK), valuing the target at $158 million. Australian Power and Gas shares have surged on the news, which will see AGL buy a 36.9 per cent stake from the three major shareholders, Nippon Gas, The Cobra Group and The Poole Interests. The agreed takeover bid is 52 cents per share, representing a 33 per cent premium to Australian Power’s pre-offer share price of 39 cents. Shares in AGL Energy are trading down 0.86 per cent at $14.97. 
 
RHG Limited (ASX:RHG) has entered a trading halt until the beginning of trade tomorrow, with suitor Resimac revising its 44.1 cent bid for the lender. Resimac is competing with Pepper Australia, who last week tabled its rival bid of 46 cents per share, and has until this Wednesday to match or surpass Pepper’s bid. Shares in RHG last traded at $0.49. 
  
Best and worst performers

 The best performing sector is Consumer discretionary gaining 11 points to 1,660. Shares in Twenty-First Century Fox Inc (ASX:FOX) have risen 2.25 per cent and trading at $33.56. Shares in Flight Centre Limited (ASX:FLT) and Navitas Limited (ASX:NVT) are also stronger. 
 
The worst performing sector is Materials, falling 106 points to 8,980. Shares in Newcrest Mining Limited (ASX:NCM) have fallen 5.17 per cent, trading at $11.46. Shares in Iluka Resources Limited (ASX:ILU) and Fortescue Metals Group Limited (ASX:FMG) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,288 an ounce and the Australian dollar is buying $US0.9074.

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