Overnight gains on Wall St did help buoy the local market on open but gains soon turned negative in late morning, down 0.6 per cent.
The banks saw an abrupt end to their short-term rally with CBA seeing yesterday’s gains all but wiped out.
Myer also tumbled today as it came out of a trading halt following the release of annual results earlier in the week.
The S&P/ASX 200 index is 30 points down at 5,072. On the futures market the SPI is 7 points lower.
Economic news
The ABS has shown a decrease in the trade deficit in July with a 19 per cent narrowing of the deficit, to $2.5 billion.
We also got a read on retail trade for July with a fall of 0.1 per cent in retail activity for the month to follow on from the surprise gains that were made last month.
Company news
Evolution Mining
(ASX:EVN) has received approval from the Foreign Investment Review Board for its takeover of Phoenix Gold Limited
(ASX:PXG). The deal has a few minor conditions remaining with Evolution planning to send a bidder’s statement to Phoenix shareholders in late September. Shares in Evolution are trading up 0.89 per cent at $1.13
Energy Developments Limited
(ASX:ENE) has seen its landfill gas power project extended for a further 15 years with the owner of Zion landfill in the US. The company will be entitled to receive land fill gas from Advanced Disposal Services Illinois facility until 2037. Managing Director Greg Pritchard says the deal shows the depth of the company’s US based growth opportunities. Shares in Energy Developments are flat at $7.87
Best and worst performers All major sectors were lower today. The sector with the least losses is consumer staples, down 0.05 per cent to 8,283. Shares in Metcash Limited
(ASX:MTS) have risen 1.91 per cent and trading at $1.06. Shares in Treasury Wine Estates Limited
(ASX:TWE) and Coca-Cola Amatil Limited
(ASX:CCL) are also stronger.
The worst performing sector is consumer discretionary, falling 1.7 per cent to 1,739. Shares in Myer Holdings Limited
(ASX:MYR) have fallen 16.8 per cent, trading at $0.94. Shares in Kathmandu Holdings Limited
(ASX:KMD) and Slater & Gordon Limited
(ASX:SGH) are also lower.
Gold and the dollar
Gold is trading at $US1,134 an ounce.
The Australian dollar is buying $US0.7008
