Midday: Aus shares slip on eco data

Market Reports

Absent of any strong offshore leads, the Australian share market saw a flat start to the trading week however has slipped in early trade and is 0.6 per cent lower at noon, on the back of a slew of mostly uninspiring local economic data. All major sectors are trading lower at this stage. Meanwhile, the Australian dollar has risen to the day’s high on the back of better than anticipated building approvals and company profits data from the ABS.
 
The S&P/ASX 200 index is 35 points down at 5,285. On the futures market the SPI is 36 points lower. 
 
Economic news
 
Australia's manufacturing industry contracted in November, according to the Australian Industry Group’s Performance of Manufacturing Index (PMI). The index fell 5.4 points to 47.7 points in the month. Ai Group says the index fall interrupted the promising run of mild expansion in Australia’s PMI over the past two months. Contraction was evident in the sub-indexes for production, new orders and supplier deliveries.

The Australian Bureau of Statistics says building approvals slipped 1.8 per cent in October, well ahead of the 5 per cent fall tipped by economists. Approvals had jumped 16.9 per cent in September, and are 23.1 per cent up over the year.

Also from the ABS, Company profits rose a stronger than expected 3.9 per cent in the third quarter, after nudging up 0.4 per cent in the previous quarter.
 
And Inflation has remained benign in November, as the price of fruit and vegetables rose but fuel costs slipped, according to the TD Securities-Melbourne Institute monthly gauge. Inflation grew by 0.2 per cent last month after a 0.1 per cent rise in October. In the year to November, inflation lifted by 2.4 per cent, above previous 2.1 per cent annual readings. TD Securities head of Asia-Pacific research Annette Beacher says inflation remains well within the lower half of the RBA's 2 to 3 per cent target range.
 
Company news 
 
Warrnambool Cheese & Butter Factory Co. (ASX:WCB) Canadian suitor Saputo is risking its reputation as a disciplined acquirer as the three way takeover battle becomes irrational, political and dangerous, according to analysts in Canada. The Australian takeovers panel on Friday banned Saputo from acquiring WCB shares for at least two months following protests from rival bidder Murray Goulburn, who claimed Saputo has misinformed shareholders as to the true value of its bid. Shares in WCB are trading flat at $9.25. 
 
Oil and gas explorer Icon Energy Limited (ASX:ICN) share are soaring after it completed an $18.8 million capital raising, comprising the sale of 80.3 million shares to Hong Kong based HK Prosperous Technology. The emerging energies focused company is now Icon’s largest shareholder. Funds raised will be allocated towards Icon’s Cooper Basin exploration and development program. Shares in Icon Energy are trading up 20.69 per cent at $0.18. 
  
Best and worst performers

All major sectors are lower. The sector with the fewest losses is Telco services dropping 1 point to 1,746. Shares in TPG Telecom Limited (ASX:TPM) have risen 2.91 per cent and trading at $4.25. Shares in Telecom Corp of New Zealand (Australia) (ASX:TEL) are flat, while Telstra Corporation Limited (ASX:TLS) shares are slightly down.  
 
The worst performing sector is Materials, falling 56 points to 9,921. Shares in Sirius Resources N.L. (ASX:SIR) have fallen 2.80 per cent, trading at $2.08. Shares in Sundance Resources Limited (ASX:SDL) and DuluxGroup Limited (ASX:DLX) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,248 an ounce and the Australian dollar is buying $US0.9122

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?