The Australian share market defied positive offshore leads out of Europe and the US to open flat and is looking for direction at noon as investors take in a slew of earnings reports. Commonwealth bank has delivered another record full year result, while construction giant Leighton Holdings shares have taken a dive as their profit fell short of expectations despite turning around. CSL and Primary Health Care profits have soared, while in the materials sector Worley Parsons reported an earnings dip and OZ Minerals wrote its way down to a half year loss.
The S&P/ASX 200 index is 4 points down at 5,154. On the futures market the SPI is 5 points lower.
Economic news
Consumer confidence has lifted in August, buoyed by lenders cutting mortgage rates and falls in the local currency. The Westpac-Melbourne Institute’s Index of Consumer Sentiment rose by 3.5 per cent to 105.7 in August, its highest level since March.
Company news
OZ Minerals Limited
(ASX:OZL) has posted a $269 million half year net loss, driven by $231 million in write downs on its assets. Slumping gold and copper prices are behind the write downs, however OZ has forecast improved performance from its flagship Prominent Hill mine in South Australia. Without the writedowns, OZ recorded an underlying loss of $36.1 million, and will pay shareholders an unfranked interim dividend of 10 cents per share. Investors haven’t responded well to the result, shares in OZ Minerals are trading down 3.08 per cent at $4.25.
Goodman Fielder Limited
(ASX:GFF) has swung to a full year net profit of $102.5 million and says its balance sheet remains strong, having been buoyed by improved performance in its bakery and grocery divisions during the second half. The food manufacturer will pay shareholders a final dividend of 3 cents. Shares in Goodman Fielder are trading down 1.62 per cent at $0.76.
Best and worst performers The best performing sector is Consumer staples gaining 89 points to 9,937. Shares in Wesfarmers Limited
(ASX:WES) have risen 1.21 per cent and trading at $41.88. Shares in Woolworths Limited
(ASX:WOW) and Coca-Cola Amatil Limited
(ASX:CCL) are also stronger.
The worst performing sector is Healthcare, despite the positive earnings its fallen 256 points to 13,615. Shares in CSL Limited
(ASX:CSL) have toppled from their pre-result rally yesterday despite a soaring profit, down 3.01 per cent, trading at $65.76. Shares in ResMed Inc. (CHESS)
(ASX:RMD) and Acrux Limited
(ASX:ACR) are also lower.
Gold and the dollar
Gold is trading at $US1,322 an ounce and the Australian dollar is buying $US0.9094.
