Following positive leads the Australian share market opened slightly higher but dipped into the red before noon. The benchmark index has stayed lower following the release of official jobs numbers showing a bigger than expected drop in the jobless rate.
Across the sectors most are trading in the red, weighed down by the miners struggling with lower iron ore and gold prices. Shares in department store retailer Myer Holdings Limited
(ASX:MYR) fell to the benchmark’s worst performer after reporting a 23 per cent annual net profit drop.
Figures
The S&P/ASX 200 index has dipped 6 points to 5,568 at noon. On the futures market the SPI is 7 points lower.
Economic news
Australia’s unemployment rate dropped more than expected last month on the back of strong jobs creation. The Australian Bureau of Statistics reports the economy added 121,000 jobs in August, against expectations of a 20,000 gain. Australia’s jobless rate fell to 6.1 per cent from 6.4 per cent the month before.
Company news
Sigma Pharmaceuticals Limited
(ASX:SIP) has lifted its interim net profit and forecast growth ahead on the back of its latest acquisitions. The pharmaceutical company’s net profit rose 37.5 per cent to $22.4 million in the six months to the end of July. Sigma has described the result as strong and looking ahead expects to benefit from continued sales growth and its recently acquired Central Healthcare Services (CHS) and Discount Drug Stores (DDS). Sigma has declined to pay an interim dividend because it does not have sufficient franking credits but has flagged higher dividends in the future. Shares in Sigma Pharmaceuticals have fallen 3.01 per cent and are trading at $0.81 at noon.
Shares in Elders Limited
(ASX:ELD) have entered into a trading halt ahead of revealing a capital raising. The rural services company has told the ASX it is currently undertaking a bookbuild for the capital raising. Elders expects the trading halt will remain in place until next Monday unless the company asks for the halt to be lifted beforehand. The news comes after Elders last week announced it will sell its 50 per cent interest in AWH Pty Ltd to DP World Australia Limited. Shares in Elders last traded at $0.21 before entering into a trading halt.
Best and worst performers
The best performing sector is health care, gaining 0.5 per cent to 15,417. Shares in Japara Healthcare Limited
(ASX:JHC) have risen 1.83 per cent and trading at $2.22. Shares in Sirtex Medical Limited
(ASX:SRX) and CSL Limited
(ASX:CSL) are also stronger.
The worst performing sector is consumer staples, falling 0.6 per cent to 10,019. Shares in Goodman Fielder Limited
(ASX:GFF) have eased 1.22 per cent, trading at $0.61. Shares in Woolworths Limited
(ASX:WOW) and Tassal Group Limited
(ASX:TGR) are also lower.
Gold and the dollar
Gold is buying $US1,249 an ounce.
The Australian dollar is buying $US0.9204.
