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With a mix of leads and some strong earnings results, the Australian share market opened higher, however towards midday the gains were reversed with the local bourse down 0.4 per cent at noon.
AMP and nickel miner Western Areas both pushed higher on strong earnings, while Wesfarmers and Fairfax both reported dips in profit. Crown however still managed to impress investors despite a slide in profit seeing its share price push higher.
The S&P/ASX 200 index is 20 points down at 5,896. On the futures market the SPI is 19 points lower.
Company news
Shares in Wesfarmers Limited (ASX:WES) have dipped as it reported first half net profit that was down 3.7 per cent on the back of selling insurance and industrial gas businesses. The conglomerate reported net profit of almost $1.4 billion with strong gains by Coles and its hardware stores supported weaker results from mining and energy. The company says the group is optimistic about the economy’s transition from resources with its retail businesses well positioned to benefit from lower interest rates and lower fuel prices. Shares in Wesfarmers are trading down 1.94 per cent at $45.00
Metcash Limited (ASX:MTS) will buy Southern Independent Liquor Group in a further consolidation of the liquor industry. The wholesale and distribution company says SILG operates in Victoria and Tasmania with over 100 Duncan’s and OzLiquor outlets. CEO Ian Morrice says the purchase would strengthen the company’s presence in these states and sales will increase as they integrate into the Metcash marketing program. Shares in Metcash are trading up 2.92 per cent at $1.58
Best and worst performers
The best performing sector is consumer discretionary, gaining 0.8 per cent to 1,951. Shares in Crown Resorts Limited (ASX:CWN) have risen 7.19 per cent and trading at $15.50. Shares in Super Retail Group Limited (ASX:SUL) and G8 Education Limited (ASX:GEM) are also stronger.
The worst performing sector is real estate investment trusts, falling 1.4 per cent to 1,299. Shares in Abacus Property Group (ASX:ABP) have fallen 3.34 per cent, trading at $3.18. Shares in Charter Hall Group (ASX:CHC) and DEXUS Property Group (ASX:DXS) are also lower.
Gold and the dollar
Gold is trading at $US1,213 an ounce.
The Australian dollar is buying $US0.7811
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