Following negative leads the Australian share market has had a soft start to the session, drifting either side of the opening mark and trading flat at noon.
The local currency has dropped to a three-and-a-half month low after strong US retail sales figures pushed the US dollar higher and saw the price of gold ease about 2 per cent amid the prospect of tapering economic stimulus.
The Aussie dollar is testing support around $US0.89, also feeling the pressure from Reserve Bank of Australia (RBA) governor Glen Stevens who claims the local dollar should be closer to $US0.85.
Across the local board sectors are putting in a mixed performance with health stocks struggling but energy stronger on higher oil prices.
Figures
The S&P/ASX 200 index has lost 4.5 points to sit at 5,058. On the futures market the SPI is 5 points higher.
Company news
Shares in Transfield Services Limited
(ASX:TSE) have risen 5.92 per cent after the provider of operations, maintenance and construction services announced it has secured $240 million of work across Australia and New Zealand.
Shares in QBE Insurance Group Limited
(ASX:QBE) have moved 1.63 per cent higher despite two major ratings agencies [Standard & Poor’s and AM Best] changing the insurance giant’s financial strength outlooks to negative following its profit downgrade earlier this week.
Shares in New Talisman Gold Mines Limited
(ASX:NTL) have surged 55.56 per cent after the New Zealand minerals explorer inked a deal to secure development funding from a Chinese investment group.
Shares in Silver Chef Limited
(ASX:SIV) have plunged 25.61 per cent after the provider of hospitality equipment funding warned its full year net profit is expected to fall up to 15 per cent from its previously advised guidance of $13 million.
Best and worst performers
The best performing sector is energy gaining 28 points to 12,887. Shares in Buru Energy Limited
(ASX:BRU) have risen 4.29 per cent and trading at $1.46. Shares in Aurora Oil & Gas Limited
(ASX:AUT) and Senex Energy Limited
(ASX:SXY) are also stronger.
The worst performing sector is health care, falling 76 points to 13,564. Shares in CSL Limited
(ASX:CSL) have eased 0.96 per cent, trading at $65.32. Shares in Acrux Limited
(ASX:ACR) and Ramsay Health Care Limited
(ASX:RHC) are also lower.
Gold and the dollar
Gold is trading at $US1,228 an ounce.
The Australian dollar is buying $US0.8932.
