Midday: ASX slips ahead of Medibank IPO

Market Reports

The Australian share market is a sea of red slipping 0.94 per cent as investors lock in profits from yesterday’s jump ahead of the Medibank Private IPO which will commence trading at noon. 
 
The S&P/ASX 200 index is 47 points down at 5,314. On the futures market the SPI is 31 points lower. 
 
Looking at economic news: The ANZ Roy Morgan weekly survey of consumer confidence rose 1.3 points per cent to 114.3 for the week ending 23 November, taking the index just above the long run average of 113.2 over the past 14 years. The figure suggests a positive result for retail spending as we head into the Christmas season. 
 
Company news
 
Austbrokers Holdings Limited (ASX:AUB) has entered into a deal with an 80 per cent owned subsidiary, NZ Brokers Holdings, to acquire two businesses in New Zealand. The deal will see Austbrokers take a 100 per cent interest in BrokerWeb Management, a broker cluster manager with 40 members in NZ and a 50 per cent stake in BrokerWeb Risk Services Newco. Payments of $15.2 million, representing around 70 per cent of the final purchase price will be paid on completion of the deal with further payments due in 2016 and 2017 based on future operating profits of the companies. Shares in Austbrokers Holdings Limited (ASX:AUB) has reversed early losses on open to trade flat at $10.21. 
 
TechnologyOne Limited (ASX:TNE) has posted a 15 per cent jump in net profit before tax. Record licence fees helped take revenue to $40.2 million in the upper end of guidance growth of 10 – 15 per cent. Strong customer retention and new product releases drove an 11 per cent increase in licence fees with the company posting its eleventh consecutive year of record revenue. Executive Chairman Adrian Di Marco said, “ Our ability to evolve and adapt to a rapidly changing world, while remaining focused on what we do, has been the key to our long term success’. Mr Di Marco added that the company remains well positioned for continued strong growth. Shares in TechnologyOne Limited (ASX:TNE) are trading 1.23 per cent lower at $3.22. 
 
Best and worst performers

All sectors are down in morning trade. The sector with the least losses is financials excluding real estate investment trusts, slipping 0.5 per cent to 7,050. Shares in OzForex Group have risen 9.73 per cent and are trading at $2.48 after delivering a strong lift in profit growth. Shares in Aveo Group and Insurance Australia are also stronger. 
 
The worst performing sector is materials, falling 1.7 per cent to 8,909 to reverse most of yesterday’s gains. Shares in Western Areas have fallen 4.9 per cent, trading at $4.27. Shares in Fortesque Metals Group and Oz Minerals are also lower. 
 
Gold and the dollar

Gold is trading at $US1,198 an ounce.
The Australian dollar is buying 86.12 US cents.