Bega raises $284M: Aus shares 0.4% lower at noon

The Australian share market opened slightly lower and has made a modest decline in the first 2 hours of trade. Energy stocks are dragging on the market. Most of the sectors are trading in the red.

The S&P/ASX 200 index is 26 points down or 0.4 per cent lower at 6,610. On the futures market the SPI is pointing to a fall of 31 points.

Company news

Shares in Bega Cheese (ASX:BGA) have rallied this morning, after it successfully raised $284 million, via the institutional component of its 1 to 4.5 pro rata entitlement offer, and its underwritten institutional placement. The proceeds of the $534 million raising will be used to partly fund the acquisition of Lion Dairy and Drinks. The offer saw strong support, with a take up rate of approximately 96 per cent. Shares in Bega Cheese (ASX:BGA) are trading 9.7 per cent higher at $5.46 at noon.

Best and worst performers

The best-performing sector is REITs, adding just over 1 per cent, while the worst performing sector is Energy, shedding 1.6 per cent.

The best performing stock in the S&P/ASX 200 is Bega Cheese (ASX:BGA), rising 9.7 per cent to $5.46, followed by shares in GWA Group (ASX:GWA) and Gold Road Resources (ASX:GOR).

The worst performing stock in the S&P/ASX 200 is Treasury Wine Estates (ASX:TWE),dropping 8.5 per cent to $9.52, followed by shares in Webjet (ASX:WEB) and Flight Centre Travel Group (ASX:TWE).

Commodities and the dollar

Gold is trading at US$1,812 an ounce.
Iron ore price rose 0.8 per cent to US$128.39.
Iron ore futures are pointing to a rise of 1.6 per cent.
One Australian dollar is buying 73.58 US cents.

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Source: Finance News Network