The Australian share market dropped at open and has remained in the red after the Reserve Bank of Australia’s June board meeting minutes affirmed a neutral policy bias. Despite a positive lead from Wall Street losses in the mining and energy sectors have weighed on the local bourse, offsetting strength among property, retail and financial sectors. Gold and iron ore miners have pushed the materials sector to the worst performer after the price of iron ore hit a two-year low. The energy sector has remained weak amid tensions in Iraq and news Woodside Petroleum Limited's
(ASX:WPL) biggest shareholder Shell cut its stake in the oil and gas producer.
Figures
The S&P/ASX 200 index has dropped 11 points to 5,401. On the futures market the SPI is 20 points lower.
Company news
Navitas Limited
(ASX:NVT) is poised to spend $US13 million to buy a California based creative media college called Ex’pression College to support its growth in the US. The provider of educational services says the acquisition will be made through its subsidiary SAE Institute Group Inc. CEO Rod Jones says the purchase will provide SAE with a significant expanded footprint in the key California market. The acquisition is also expected to facilitate the ongoing accreditation process to boost the number of SAE courses and qualifications in California and across the US. Shares in Navitas are trading 0.56 per cent lower at $7.11.
Affinity Education Group Limited
(ASX:AFJ) has completed the acquisition of its final 30 child care centres as part of an $80 million deal to buy 51 centres announced in April. The provider of education and child care services says the acquisitions deliver significant benefits through increased scale, earnings and geographic diversification. The acquisitions were funded through a combination of an entitlement offer, issue of shares to vendors and a draw-down of debt. Shares in Affinity Education Group are trading steady at $1.27.
Best and worst performers
The best performing sector is real estate investment trusts, gaining 7 points to 1,072. Shares in Federation Centres
(ASX:FDC) have risen 1.98 per cent and trading at $2.58. Shares in Westfield Group
(ASX:WDC) and Westfield Retail Trust
(ASX:WRT) are also stronger.
The worst performing sector is materials, falling 78 points to 9,485. Shares in Medusa Mining Limited
(ASX:MML) have fallen 4.01 per cent, trading at $1.79. Shares in Beadell Resources Limited
(ASX:BDR) and Regis Resources Limited
(ASX:RRL) are also lower.
Gold and the dollar
Gold is trading at $US1,271 an ounce.
The Australian dollar is under $0.94 on the back of the Reserve Bank of Australia’s meeting minutes and is buying $US0.9375.
