Healthscope T/O nears, ASX new 2-yr lows: ASX loses 0.5% at noon

Market Reports

by Jessica Amir

The Australian share market rose at the open and has fallen into the red, hitting new two-year lows, with selling in Telcos, Healthcare and Industrials capping gains.

Meanwhile, the mining sector has seen a rebound and was making a profit of over 1 per cent earlier in the session, with Property following. 

The S&P/ASX 200 index is 0.5 per cent or 28 points down at 5,478 points at noon,  14 per cent away from its 10-year high it hit late August.

On the futures market the SPI is 61 points lower.

Company news

Canadian investment management company, Brookfield says it’s willing and able to proceed with the sweetened takeover proposed of Healthscope (ASX:HSO) at a total value $4.49 billion (at $2.585 per share). It comes as it received the majority of all of the due diligence materials. Meantime, the underbidder, the BGH Australian Super Consortium says it will be conducting due diligence immediately on its non-binding proposal to takeover Healthscope, at a price of $2.36 per share. Shares in Healthscope Limited (ASX:HSO) are trading 5.8 per cent higher at $2.18 at noon.

OneVue (ASX:OVH) has completed the purchase of KPMG’s Super Member Administration business, taking OneVue’s funds under administration to over $4.0 billion, 130,000 members and 38 super funds. That makes it the fourth largest superannuation member administrator in the market. Meantime, the business also signed a new Aon/Equity Trustee agreement. Shares in OneVue (ASX:OVH) last traded at $0.60 at noon.

Dexus (ASX:DXS) has secured global investment manager, M&G Real Estate as a new investor on its funds management platform. It comes after M&G snapped up Future Fund’s 50 per cent interest in the Dexus Industrial Partnership. The purchase amount was not disclosed. M&G Real Estate has £31.7 billion of assets under management (AUM). Dexus (ASX:DXS) is trading 0.3 per cent higher at $11.23.

Best and worst performers

The best performing sector is Materials adding 0.6 per cent, while the worst performing sector is Telcos, shedding 1.8 per cent.

The best performing stock in the S&P/ASX 200 is Healthscope Limited (ASX:HSO), rising 5.8 per cent to $2.18, followed by shares in Resolute Mining Limited (ASX:RSG) and Northern Star Resources (ASX:NST).

The worst performing stock in the S&P/ASX 200 is Vocus Group (ASX:VOC), dropping 8.1 per cent to $3.06, followed by shares in Ardent Leisure Group (ASX:ALG) and Galaxy Resources Limited (ASX:GXY).

Commodities and the dollar

Gold is trading at US$1,261 an ounce.
Iron ore price rose 4.5 per cent to US$72.26 and its futures are pointing to a rise of 1.2 per cent.
One Australian dollar is buying 71.14 US cents.

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