Following negative leads from the US spooked by drifting oil prices and a shooting at the Canadian Parliament, the Australian share market opened lower and clawing back early losses to be 0.07 per cent down at noon.
The S&P/ASX 200 index is 4 points down at 5,382. On the futures market the SPI is 10 points lower.
Company news
Despite posting a $91 million loss for the half year, Australian Pharmaceutical Industries
(ASX:API) has announced a 32.5 per cent jump in underlying profit. The result is driven by exceptional performance in its Priceline and Priceline Pharmacy network which has seen overall sales growth of 11.1 per cent and like-for-like growth of 6 per cent on the previous year. The outlets have also expanded by 27 new shops to a total of 390 stores. Onlines sales have surged 180 per cent in the past year while net debt is down by $18 million. API has declared a final dividend of 2 cents per share fully franked. The outlook is for further growth and expansion. Shares in API are trading up 2.99 per cent at $0.69.
Oil Search Limited
(ASX:OSH) says third quarter production has soared 81 per cent on the last quarter and is four times higher than Q3 2013. The jump is due to the PNG LNG project coming fully on line. The quarter has produced highest revenue in the company’s history, $US538 million, three times higher than the previous three month. Oil Search has also undergone a strategic review for the major corporate transformation necessary thank to the PNG LNG project. The focus is on a dividend payout ratio of up to 50 per cent of net profit significantly lifting the return to shareholders.
Shares in Oil Search are trading 1.26 per cent lower at $8.61.
Best and worst performers
The best performing sector is real estate investment trusts, gaining 0.7 per cent to 1,116. Shares in SCA Property have risen 1.77 per cent and are trading at $1.73. Shares in BWP Trust and Charter Hall are also stronger.
The worst performing sector is materials, falling 1.3 per cent to 9,250. Shares in Northern Star Resources have fallen 4 per cent, trading at $1.32. Shares in Resolute Mining and Western Area are also lower.
Gold and the dollar
Gold is trading at $US1,242 an ounce.
The Australian dollar is buying 87.53 US cents.
