Following a soft opening the Australian share market has taken a tumble on a slew of average economic data and is 0.4 per cent down at noon, with all eyes now turning to this afternoon’s RBA rates decision. Among the sectors, REIT's are leading the gains at this stage while Energy stocks are down.
The S&P/ASX 200 index is 17 points down at 5,094. On the futures market the SPI is 17 points lower.
Economic news
The Australian Bureau of Statistics says the nations trade surplus widened in June, albeit below expectations. Australia’s trade surplus expanded 19 per cent to $602 million in the month, beneath analyst expectations as high as $804 million.
Also from the ABS, the June quarter house price indexes for the eight capital cities are out, indicating a rise of 2.4 per cent. In the year to June the house price index rose 5.1 per cent.
ANZ’s job advertisements series for July is also out and they’ve fallen for the fifth straight month to be 19 per cent below levels from a year ago. The index declined by 1.1 per cent in the month, on the back of a 1.6 per cent fall in June.
Company news
Iress Limited
(ASX:IRE) will acquire UK financial services company Avelo for $361.62 million, a transaction it says is consistent with its growth strategy. Meanwhile, Iress has reported an 8.9 per cent drop in its half year net profit of $17.8 million and will pay shareholders an interim dividend of 13.5 cents, 90 per cent franked. The financial systems company has also entered a trading halt for three days in anticipation of an announcement relating to a material transaction. Shares in Iress last traded at $8.27.
Credit Corp Group Limited
(ASX:CCP) shares have firmed in early trade after it announced a 12 per cent lift in its full year net profit of $29.9 million. Despite the result, the debt collector says conditions remain challenging, pointing to limited unsecured growth and low arrears as expected catalysts for domestic purchasing contraction in 2014. Shares in Credit Corp are trading up 1.89 per cent at $9.68.
Best and worst performers The best performing sector is Real estate investment trusts gaining 12 points to 1,020. Shares in GPT Group
(ASX:GPT) have risen 3.67 per cent and trading at $3.67. Shares in Mirvac Group
(ASX:MGR) and CFS Retail Property Trust
(ASX:CFX) are also stronger.
The worst performing sector is Energy, falling 139 points to 13,399. Shares in Whitehaven Coal Limited
(ASX:WHC)) have fallen 2.51 per cent, trading at $1.94. Shares in Paladin Energy Limited (ASX:PDN and Santos Limited
(ASX:STO) are also lower.
Gold and the dollar
Gold is trading at $US1,305 an ounce and the Australian dollar is buying $US0.8930.
