Negative leads pushed the Australian share market down at open but stocks have come off their lows at noon and are trading 0.2 per cent lower. Most sectors are trading in the red with tech stocks suffering after the Nasdaq plunged 2.6 per cent at the end of last week.
On the bright side gold miners are buoyant after the price of the precious metal jumped almost $US20. The consumer staples sector is also trading strong after Wesfarmers Limited
(ASX:WES) agreed to sell its insurance broking and premium funding operations for $1.01 billion.
Figures
The S&P/ASX 200 index has dropped 14 points and is sitting at 5,409. On the futures market the SPI is 27 points lower.
Economic news
Australia’s construction sector activity improved last month but remained in contraction territory. The Australian Industry Group performance of construction index gained 2 points to hit 46.2 in March from 44.2 the month before. The read remained below 50 for the third straight month which indicates contraction.
Company news
Aveo Group
(ASX:AOG) has forecast higher net cash flows this year as a result of strong sales from its retirement established business and residential communities and apartment division. The property and investment company has also affirmed its forecast for a higher annual underlying profit as it continues its transformation to a pure retirement group. Aveo Group says forecast settlements for its retirement established business are expected to grow up to 10 per cent this year. Shares in Aveo Group have gained 1.72 per cent and are trading at $2.06.
Drillsearch Energy Limited
(ASX:DLS) has affirmed its full year forecast after exceeding its annual output guidance at the beginning of the current financial year. The oil and gas producer is expecting record production of between 3 to 3.3 million barrels of oil equivalent in the 2014 financial year. Drillsearch has also advised its reserves are continuing to increase even as production lifts. Shares in Drillsearch Energy have dropped 1.78 per cent and are trading at $1.66.
Best and worst performers
The best performing sector is consumer staples, gaining 34 points to 9,841. Shares in Goodman Fielder Limited
(ASX:GFF) have risen 1.46 per cent and trading at $0.52. Shares in Wesfarmers Limited
(ASX:WES) and Coca-Cola Amatil Limited
(ASX:CCL) are also stronger.
The worst performing sector is consumer discretionary, falling 25 points to 1,809. Shares in REA Group Limited
(ASX:REA) have dropped 4.6 per cent, trading at $46.49. Shares in Harvey Norman Holdings Limited
(ASX:HVN) and Navitas Limited
(ASX:NVT) are also lower.
Gold and the dollar
Gold is trading at $US1,304 an ounce.
The Australian dollar is buying $US0.9286.
