Following soft overseas leads, the Australian share market opened lower as weak trade figures out of China lead to a sell off among materials stocks. At midday the market was trading 0.8 per cent down.
The S&P/ASX 200 index is 43 points down at 5,419. On the futures market the SPI is 51 points lower.
Company news Seven West Media Limited
(ASX:SWM) Chairman Kerry Stokes has stood apart from other broadcast media owners by saying he does not support changes to media ownership laws proposed by the Federal government. Stokes’ Seven West owns the nation’s number one television company, Pacific Magazines and The West Australian newspapers.
The media veteran said in The Financial Review that the government should be very careful changing existing media ownership laws. Communications minister Malcolm Turnbull says the existing laws are outdated in a digital landscape.
Analysts have said the move may be a defensive move against possible mergers between Nine and Fairfax and News Corp and TEN. Shares in Seven West Media are trading up 1.2 per cent at $2.17.
Insurance Australia Group Limited
(ASX:IAG) has announced it will try to raise up to $200 million in subordinated debt to partially fund its planned acquisition of Wesfarmers insurance underwriting business, announced late last year. The entire acquisition is set to cost IAG $1.845 billion and will be funded by a combination of the subordinated debt, a share-purchase plan and an institutional placement.
If successful, the acquisition would make IAG, who already own NRMA and CGU, the biggest insurer in Australasia. Shares in IAG are trading down 1.5 per cent at $5.36.
The best and worst performers The best performing sector is Consumer Discretionary gaining 6 points to 1,912. Shares in Pacific Brands Limited
(ASX:PBG) have risen 2.9 per cent and trading at $0.53. Shares in Southern Cross Media Group
(ASX:SXL) and Crown Resorts Limited
(ASX:CWN) are also stronger.
The worst performing sector is Materials, falling 328 points to 10,111. Shares in Fortescue Metals Group Limited
(ASX:FMG) have fallen 8.29 per cent, trading at $4.98. Shares in Arrium Limited
(ASX:ARI) and Atlas Iron Limited
(ASX:AGO) are also lower.
Gold and the dollar
Gold is trading at $US1,336 an ounce.
The Australian dollar is buying $US0.9055.
