Despite solid gains in the US overnight, the Australian share market opened lower and is 0.43 per cent down at noon.
Local markets receded on the back of solid gains yesterday, while the gold price jumped overnight which saw gold stocks as some of the best performers today.
The S&P/ASX 200 index is 22 points down at 5,446. On the futures market the SPI is 20 points lower.
Economic news The Commonwealth Bank
(ASX:CBA) released its business sales indicator for May today, suggesting spending across the economy grew by 0.3 per cent in the month in trend terms, which represents the slowest rate of growth for ten months.
Company news
UGL Limited
(ASX:UGL) will return the surplus proceeds from the sale of the DTZ property, to shareholders once the sale is completed and after the pay down of debt.
The engineering services company says it is evaluating the most efficient method of returning surplus funds to shareholders. Shares in UGL are trading up 2.42 per cent at $6.77.
The takeover of Envestra Limited
(ASX:ENV) by Cheung Kong is facing turbulence with issues around its planned dividend payment.
The gas distribution company had proposed a dividend of 3.5 cents to be paid prior to 21 August this year. The consortium has now indicated that it objects to the dividend under those circumstances, this may prompt an appeal to the Takeovers Panel. Shares in Envestra are trading down 0.74 per cent at $1.34.
Best and worst performers The best performing sector is real estate investment trusts gaining 1 points to 1,081. Shares in Shopping Centres Australasia Property Group (SCP) have risen almost 1 per cent and trading at $1.78. Shares in CFS Retail Property Trust 1
(ASX:CFX) and Charter Hall Retail REIT
(ASX:CQR) are also stronger.
The worst performing sector is telco services, falling 11 points to 1,815. Shares in Telstra Corporation Limited
(ASX:TLS) have fallen 0.76 per cent, trading at $5.20. Shares in Telecom Corporation of New Zealand
(ASX:TEL) and Singapore Telecommunications Limited
(ASX:SGT) are also lower.
Gold and the dollar
Gold is trading at $US1,313 an ounce.
The Australian dollar is buying $US0.9416.
