The ASX has pulled back 0.2 per cent at noon following a tepid start to the day despite positive US leads.
The S&P/ASX 200 index is 8 points down at 4,715. On the futures market the SPI is 7 points lower.
Company news
Mesoblast limited
(ASX:MSB) will move into stage 3 trials of its stem cell treatment for back pain after early trials delivered positive results. The pharmaceutical company says its product that is geared towards patients with degenerative spinal discs, is less invasive. Phase 3 trials will commence later this year in Australia, the US and Europe. Mesoblast develops, manufactures and commercialises biologic products for the broad field of regenerative medicine. Shares in Mesoblast are trading up 6.68 per cent at $5.59.
Funtastic Limited
(ASX:FUN) has amended the terms of its takeover bid of KP Multinational’s business assets that will provide a saving of $4 million for the current period. The toy distributor will cease making earnout payments, that was originally agreed to be paid over three years. Funtastic will now make a one-off payment of $5.5 million with $5 million to be paid immediately, followed by $500,000 in 12 months time. The early exit payment has been funded from a new line of credit and will be repaid over the next two years. Shares in Funtastic are trading up 1.96 per cent at $0.26.
Best and worst performers The best performing sector is consumer discretionary gaining 7 points to 1,392. Shares in Fairfax Media Limited
(ASX:FXJ) have risen 4.21 per cent and trading at $0.56. Shares in Myer Holdings and Echo Entertainment Group are also stronger.
The worst performing sector is materials, falling 108 points to 10,627. Shares in Iluka Resources Limited
(ASX:ILU) have fallen 2.71 per cent, trading at $8.96 Shares in Discovery Metals and Atlas Iron are also lower.
Gold and the dollar
Gold is trading at $US1,673 an ounce and the Australian dollar is buying $US1.058.
