With a debt ceiling battle brewing in the US and sending Wall Street lower, the Australian share market opened the trading week lower as expected and is 0.6 per cent down at noon. Treasury Wine Estate shares have taken a tumble as investors digest news of CEO David Dearie’s departure, with Consumer Staples leading the way down for the major sectors, while the big miners are all down in early trade.
The S&P/ASX 200 index is 31 points down at 5,246. On the futures market the SPI is 19 points lower.
Company news
Macquarie Group Limited
(ASX:MQG) has maintained its profit guidance for the current financial year, saying it expects earnings to increase provided market conditions do not deteriorate sharply. The investment bank says it expects results for the current first half to be matched in the second half, in line with previously issued guidance. Macquarie shares last week hit $50 for the first time since 2010. Shares in Macquarie are trading down 1.14 per cent at $49.43.
Boart Longyear Limited
(ASX:BLY) says it will reduce the size of its revolving credit facility from $US450 million to $US140 million and has also prices its $US300 million debt offering. The announcement is part of a bevy of changes to the companies lending agreements and is subject to completion of the group’s debt offering, which will be used to pay down loans outstanding under the revolving credit facility. Shares in Boart Longyear are trading down 3.57 per cent at $0.47.
Best and worst performers The best performing sector is Consumer Discretionary gaining 2 points to 1,769. Shares in Navitas Limited
(ASX:NVT) have risen 2.15 per cent and trading at $5.95. Shares in JB Hi-Fi Limited
(ASX:JBH) and Aristocrat Leisure Limited
(ASX:ALL) are also stronger.
The worst performing sector is Consumer Staples, falling 138 points to 9,854. Shares in Treasury Wine Estates Limited
(ASX:TWE) have fallen 6 per cent on the Dearie departure, trading at $4.46. Shares in Goodman Fielder Limited
(ASX:GFF) and Metcash Limited
(ASX:MTS) are also lower.
Gold and the dollar
Gold is trading at $US1,320 an ounce and the Australian dollar is buying $US0.9425.
