The Australian share market defied strong US leads to surprisingly head south at open, as concerns surrounding impending Chinese reforms took hold of investor attention. Local stocks are 0.6 per cent down at noon, with all major sectors trading lower, weighed mainly by energy companies. Consumer discretionary stocks have also seen big losses in early trade.
The S&P/ASX 200 index is 31 points down at 5,371. On the futures market the SPI is 28 points lower.
Company news
Amcor Limited
(ASX:AMC) will acquire privately owned Australian flexible packaging business Detmold for $50 million, subject to ACCC approval.
Detmold has sales of approximately $55 million and will form part of Amcor’s Asia Pacific division. CEO Ken Mackenzie says the acquisition presents considerable opportunities for operational synergies and returns are expected to be more than 20 per cent. Shares in Amcor are trading down 0.99 per cent at $11.05.
National Australia Bank Limited
(ASX:NAB) boss Cameron Clyne’s statutory salary was reduced by $1 million in 2013 following investor backlash over remuneration last year. NAB investors vented concerns about executive remuneration following a fall in profits, however this year has seen a turnaround, with profits lifting by 9 per cent to $5.9 billion. Shares in NAB are trading down 0.26 per cent at $34.21.
Best and worst performers All majors are currently in the red. The sector with the fewest losses is Real Estate Investment Trusts falling 10 points to 1,039. Shares in DEXUS Property Group
(ASX:DXS) have risen 0.46 per cent and trading at $1.09. Shares in Abacus Property Group
(ASX:ABP) and BWP Trust
(ASX:BWP) are also stronger.
The worst performing sector is Energy, falling 103 points to 13,773. Shares in Horizon Oil Limited
(ASX:HZN) have fallen 5 per cent, trading at $0.29. Shares in AWE Limited
(ASX:AWE) and Caltex Australia Limited
(ASX:CTX) are also lower.
Gold and the dollar
Gold is trading at $US1,287 an ounce and the Australian dollar is buying $US0.9367.
