Midday: ASX tumbles to start week

Market Reports

Ignoring mixed leads from overseas markets, the Australian share market dived to open the trading week, falling to a near 1 per cent low in early trade but has bounced off the floor slightly to be 0.7 per cent down at noon. Retail stocks are sharply lower, with David Jones falling 5 per cent early on the back of some disappointing sales data.   
 
The S&P/ASX 200 index is 36 points down at 4,947. On the futures market the SPI is 25 points lower. 
 
Company news 
 
The Reject Shop Limited (ASX:TRS) has completed a $44 million capital raising after increasing the cap on its share purchase plan from $10 to $14 million. The retailer will issue just over 864 thousand new shares, valued at $25.5 million, and intends to direct funds towards an accelerated rollout of 40 new stores in fiscal 2014. Shares in The Reject Shop are trading down 1.12 per cent at $15.91. 
 
Discovery Metals Limited (ASX:DML) says it has closed out its additional copper and silver hedges, generating $26 million. Discovery intends to direct $22 million of the hedge closeout proceeds towards prepayments on project loans, with the remaining $4 million set to be transferred to its Debt Service Reserve Account. Shares in Discovery Metals are trading steady at $0.21. 
  
Best and worst performers

The best performing sector is Real estate investment trusts, the only major sector higher at this stage, it’s gained 3 points to 1,078. Shares in Commonwealth Property Office Fund (ASX:CPA) have risen 0.68 per cent and trading at $1.11. Shares in Westfield Group (ASX:WDC) and Westfield Retail Trust (ASX:WRT) are also stronger. 
 
The worst performing sector is Consumer Discretionary, falling 24 points to 1,569. Shares in InvoCare Limited (ASX:IVC) have fallen 5.47 per cent, trading at $10.55. Shares in Trade Me Group Limited (ASX:TME) and JB Hi-Fi Limited (ASX:JBH) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,386 an ounce.and the Australian dollar is buying $US0.9632. The local currency has dropped a staggering 7 per cent over the past month.