Following lacklustre leads from overseas markets the Australian share market see-sawed in early trade before sinking into the red to trade 0.49 per cent down at noon. Oil prices have sunk to their lowest levels in more than five years on fears the bear market will continue well into 2015 whilst gold prices are also under pressure, facing their second straight annual loss.
The S&P/ASX 200 index is 28 points down at 5,446. On the futures market the SPI is 53 points lower.
Company news
Rutila Resources Limited
(ASX:RTA) is one step closer to a green light on the Balla Balla joint venture. Rutila has been invited to negotiate a state agreement with the WA government regarding its proposed private railway. The line would link the Flinders Mines project in the Pilbara with the proposed Balla Balla port. Designs are well underway for the required infrastructure with all access negotiations to the area now complete. It is hoped construction will begin at the end of 2015 with projected expected to complete within a two year time frame. Shares in Rutila are trading flat at $0.14.
Cudeco Limited
(ASX:CDU) is one of the only gainers in a sharply lower materials sector today. Yesterday the Queensland copper play announced intentions to hold an Extraordinary General Meeting on the 30th January 2015. The meeting is set to ratify share offers and approve new share and options issues as the company continues to raise funds for its Rocklands copper project. Cudeco has signed a spate of deals lately including a MOU with China state-owned SinoSteel as it transitions from copper explorer to copper producer. Shares in Cudeco are trading 4.79 per cent higher at $1.53.
Best and worst performers
All sectors have taken a hit today, the sector with the least losses is financials excluding real estate investment trusts, dipping 0.1 per cent to 7,318. Shares in Aveo Group have risen 0.47 per cent and trading at $2.13. Shares in IOOF Holdings and Commonwealth Bank are also stronger.
The worst performing sector is energy, falling 1.5 per cent to 11,605. Shares in Horizon Oil have fallen 4.55 per cent, trading at $0.16. Shares in Sundance Energy and Santos are also lower.
Gold and the dollar
Gold is trading at $US1,185 an ounce.
The Australian dollar is buying 81.43 US cents.
