The Australian share market dropped into the red after a brief foray into positive territory at open, and is 0.3 per cent down at noon, with investors still steeped in concern over the situation in Syria. The local market has been dragged down by the banks and healthcare stocks, with investors also digesting a rise in capex in the June quarter and a fifth consecutive monthly decline in new home sales.
The S&P/ASX 200 index is 22 points down at 5,066. On the futures market the SPI is 23 points lower.
Economic news
The Australian Bureau of Statistics says capital expenditure rose against expectations in the June quarter, lifting by 4 per cent to $40 billion. Bloomberg analysts had forecast a flat result.
New home sales have fallen for the first time in five months, according to the Housing Industry Association. Sales fell by 4.7 per cent in July, however HIA’s chief economist believes the fall to be merely a temporary setback.
Company news
Ausdrill Limited
(ASX:ASL) shares have jumped in early trade despite a 19.4 per cent fall in its full year net profit of $90.4 million, weighed down by one off costs. The mining servies firm says it is optimistic about work in the current year, as it embarks on a cost review amid falling commodity prices and uncertain demand. Shares in Ausdrill are trading up 15.81 per cent at $1.47.
Newcrest Mining Limited
(ASX:NCM) has confirmed it will delist from the Toronto Stock Exchange, after setting up its listing in early 2012.
The gold miner says very few shares have been traded on the index, and given it is now trying to cut costs, the delisting was a logical move.
Shares in Newcrest are trading down 3.06 per cent at $13.32.
Best and worst performers The best performing sector is Energy gaining 107 points to 13,627. Shares in Drillsearch Energy Limited
(ASX:DLS) have risen 5.24 per cent and trading at $1.41. Shares in Senex Energy Limited
(ASX:SXY) and Beach Energy Limited
(ASX:BPT) are also stronger.
The worst performing sector is Healthcare, falling 119 points to 13,793. Shares in Sonic Healthcare Limited
(ASX:SHL) have fallen 2.97 per cent, trading at $15.33. Shares in Mesoblast limited
(ASX:MSB) and Acrux Limited
(ASX:ACR) are also lower.
Gold and the dollar
Gold is trading at $US1,410 an ounce and the Australian dollar is buying $US0.8956.
