News: Midday: ASX puts the breaks on winning streak

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Following three days of gains the Australian share market has put the breaks on its winning streak and slipped into the red. Muted trade comes after weak leads and ahead of America’s key monthly jobs reports due this evening. Local sectors are putting in a mixed performance with mining and energy leading declines while industrial and telco sectors are providing support. 

 

Figures

 

The S&P/ASX 200 index is trading 24 points lower at 5,345. On the futures market the SPI is 25 points lower. 

 

Economic news

 

Australia’s construction sector contracted in November for the first time since May. The Australian Industry Group and Housing Industry Association’s performance of construction index fell 8 points to 45.4 in November, sinking under 50 which is the level which separates expansion from contraction. 

 

Company news

 

Shares in Bradken Limited (ASX:BKN) have soared after receiving a $872 million non-binding takeover bid, valuing the company at $5.10 per share. The mining services provider and supplier has scored the offer from funds advised by Pacific Equity Partners and Bain Capital Asia. The proposal remains conditional on the completion of due diligence and the board’s recommendation and the board says it is now reviewing the offer. Shares in Bradken have soared 25.3 per cent and are trading at $4.16 at noon. 

 

Biotechnology company Starpharma Holdings Limited (ASX:SPL) says the launch of its VivaGel condom in Japan will be delayed. The delay follows a review of the specific category of medical device classifications by Japan’s regulatory authorities. CEO Dr Jackie Fairley says the company is disappointed and surprised with the review but there is no indication of concern with the product itself. Shares in Starpharma Holdings have dropped 2.88 per cent and are trading at $0.51 at noon. 

 

Best and worst performers 

 

The best performing sector is industrials, gaining 0.8 per cent to 4,212. Shares in Bradken Limited (ASX:BKN) have risen 25.3 per cent and trading at $4.16. Shares in Monadelphous Group Limited (ASX:MND) and Qube Holdings Limited (ASX:QUB) are also stronger. 

 

The worst performing sector is energy, dropping 1.7 per cent to 11,217. Shares in Liquefied Natural Gas Limited (ASX:LNG) have fallen 10.9 per cent, trading at $2.78. Shares in Sundance Energy Australia Limited (ASX:SEA) and AWE Limited (ASX:AWE) are also lower. 

 

IPOs 

 

Enverro Limited (ASX:ERR) started trading today. The software development and professional consulting and support services company floated with an issue price of $1.00, opened at $1.00 and is currently trading at $0.96.    

 

Evolve Education Group Limited (ASX:EVO) also debuted on the ASX today. The provider of early childhood education in New Zealand floated with an issue price of $NZ1.00, opened at $1.00 and is currently trading at $1.02.    

 

Gold and the dollar

 

Gold is buying $US1,205 an ounce. 

The Australian dollar is buying $US0.8389.