The Australian share market is flat at noon as it looks for direction with local earnings reports trickling in. Healthcare stocks are leading the gains at this stage while the Utilities sector is dragging.
The S&P/ASX 200 index is 2 points up at 5,111. On the futures market the SPI is 3 points higher.
Economic news
Business confidence has hit an eight month low, while conditions remain at four year lows, according to the NAB’s monthly business survey for July. The survey indicated a 3 point fall in confidence, now sitting at negative 3, while business conditions remain languishing at negative 7. The decline in confidence has been attributed to weakness in business activity and profitability due to the inability to pass on higher costs.
Company news
Alacer Gold Corp – CDI
(ASX:AQG) has announced changes among its executive ranks, including the promotion of CFO Rodney Antal to the role of Chief Executive Officer. Mr Antal will replace the retiring David Quinlivan, with current senior VP of finance Mark Murchison to act as interim CFO, while president of Alacer’s Turkish operations Howard Stevenson has been appointed president and chief operating officer, with primary responsibility over the company’s mines. Non-executive director Stephanie Unwin has resigned from the board. Alacer says it is in well advanced talks with a number of parties regarding the sale of its Australian assets. Shares in Alacer Gold are trading up 5.18 per cent at $2.64.
Fairfax Media Limited
(ASX:FXJ) will offload managed funds internet site InvestSMART to boutique fund manager Australasian Wealth Investments Limited
(ASX:AWK) for $7 million, after buying it for $12 million six years ago. Completion of the transaction depends on the successful execution of a capital raising by Australasian Wealth, who will pay Fairfax a $150 thousand break fee if the transaction fails. Shares in Fairfax are trading up 0.48 per cent at $0.53.
Best and worst performers The best performing sector is Healthcare gaining 203 points to 13,685. Shares in Primary Health Care Limited
(ASX:PRY) have risen 6.16 per cent and trading at $5.34. Shares in CSL Limited
(ASX:CSL) and Ramsay Health Care Limited
(ASX:RHC) are also stronger.
The worst performing sector is Utilities, falling 49 points to 5,389. Shares in Energy World Corporation Limited
(ASX:EWC) have fallen 2.94 per cent, trading at $0.58. Shares in DUET Group
(ASX:DUE) and SP AusNet
(ASX:SPN) are also lower.
Gold and the dollar
Gold is trading at $US1,332 an ounce and the Australian dollar is buying $US0.9112.
