Following mixed leads, the Australian share market opened flat and is 0.1 per cent down at noon. The Aussie dollar is recovering somewhat after the RBA released its September board meeting minutes and the miners are gaining after a jump in the iron ore price overnight.
The S&P/ASX 200 index is 5 points down at 5,469. On the futures market the SPI is 5 points lower.
Economic news
The ANZ-Roy Morgan weekly report of consumer confidence has dipped to a five week low. The index dropped 1.8 per cent to 111.3 despite signs of improvement in the labour market and continued buoyancy in the housing market.
And the RBA September board meeting minutes released today have sent the Aussie dollar above the 90 US cent mark. Whilst noting ‘subdued’ labour market conditions and slow wage growth, The Reserve Bank says it will monitor risks from rising property prices as the trend warranted ongoing close observation. The central bank flagged the exchange rate saying the drop in key commodity prices meant the dollar ‘remained above most estimates of its fundamental value’. The RBA also said that speculative demand in the property sector could increase the risk of a fall in house prices later on which may cause households to further limit spending.
Company news
Shares in Ramsey Health Care Limited
(ASX:RHC) are down today after major shareholder Paul Ramsey Holdings offloaded a parcel of 4.4 million shares. The 2.2 per cent stake was sold to provide cash to satisfy bequests made on behalf of the estate of the late Paul Ramsey, founder and ex-chairman of Ramsey Healthcare. The Paul Ramsey Foundation will receive the benefit of the remaining 34 per cent of the holding with the bulk of Mr Ramsey’s estate retained in trust for the enduring benefit of the Australian community as per Mr Ramsey’s will. Shares in Ramsey Healthcare are trading 3.12 per cent lower at $49.44.
Yowie Group Limited
(ASX:YOW) has been placed in a trading halt ahead of the announcement of a supply deal with a large retailer in the US. Yowie Group, which holds the only approved patent for the manufacture and distribution of a ‘Kinder Surprise’ style toy in the US, is believed to be in talks with Walmart and one other Tier 1 retailer regarding purchase orders. The company has been steadily increasing its distribution in the US with a number of deals and hopes to eventually launch its chocolate-encased toy. The confectionary had previously banned by the US Food & Drug Administration as a choking hazard. Yowie Group last traded at 68 cents and expects to recommence trading on Thursday after the announcement.
Best and worst performers
The best performing sector is materials, gaining 0.5 per cent to 9,792 after a 4 per cent increase in the price of iron ore overnight. Shares in BC Iron have risen 6.1 per cent and are trading at $2.18. Shares in Atlas Iron and Mount Gibson Iron are also stronger.
The worst performing sector is health care, falling 0.8 per cent to 15,144. Shares in Ramsey Healthcare have fallen 3.12 per cent, trading at $49.44. Shares in Mesoblast and Greencross are also lower.
Gold and the dollar
Gold is trading at $US1,238 an ounce.
The Australian dollar is buying 90.48 US cents.
