The Australian share market gave up over 1 per cent at open as Wall Street fell on a lack of stimulus clarity from the US federal reserve, however is steadily regaining ground to be 0.7 per cent down at midday, boosted by some upbeat manufacturing data out of China and strong profit results, namely from Fortescue which is rallying after beating analyst expectations in the full year. The Aussie dollar hit a three year low following the US fed minutes, falling below $US0.90.
The S&P/ASX 200 index is 26 points down at 5,074. On the futures market the SPI is 31 points lower.
Economic news
China’s HSBC manufacturing purchasing manager’s index hit a four month high in August, indicative of stabilising growth. The index rose to 50.1 in the month, from 47.7 in July.
Company news
Seven West Media Limited
(ASX:SWM) shares are stronger despite the media group swinging to a full year loss of $70 million, including $295 million of impairments and restructuring costs. Pre tax earnings of $422 million were down 11 per cent on fiscal 2013, however operating cashflows before tax were sustained in excess of $500 million. Shares in Seven West are trading up 6.03 per cent at $2.46.
Fortescue Metals Group Limited
(ASX:FMG) has exceeded the expectations of analysts in delivering a full year net profit of $US1.74 billion.
Fortescue plans to decrease capex and improve operating margins in the coming year, moving towards the commencement of debt repayments. The iron ore giant will pay a 10 cent dividend to shareholders, and says it will retain the option to sell down a stake in its infrastructure assets should a satisfactory offer emerge. Shares in Fortescue are trading up 4.03 per cent at $4.25.
Best and worst performers The best performing sector is Consumer discretionary gaining 3 points to 1,721. Shares in Ardent Leisure Group
(ASX:AAD) have risen 7.10 per cent and trading at $1.81. Shares in Seven West Media Limited
(ASX:SWM) and Ten Network Holdings Limited
(ASX:TEN) are also stronger.
The worst performing sector is Healthcare, falling 66 points to 13,659. Shares in Cochlear Limited
(ASX:COH) have fallen 1.16 per cent, trading at $59.03. Shares in Primary Health Care Limited
(ASX:PRY) and Mesoblast Limited
(ASX:MSB) are also lower.
Gold and the dollar
Gold is trading at $US1,364 an ounce and the Australian dollar remains below the 90 cent mark, it’s currently buying $US0.8983.
