Following another plunge in the oil price overnight, the Australian share market sank on open and is currently trading 0.74 per cent down at noon. Energy and material stocks are sagging in morning trade with the big four banks also trading lower.
The S&P/ASX 200 index is 43 points weaker at 5,380. On the futures market the SPI is 53 points lower.
Company news
Materials company Alumina Limited
(ASX:AWC) has noted the fourth quarter earnings release of joint venture partner Alcoa in the US overnight. The companies are closely linked as Alumina holds 40 per cent of the Alcoa alumina business Alcoa World Alumina & Chemicals with Alcoa holding the remaining 60 per cent. AWAC produced 4 million tonnes of alumina during the quarter with margins improving significantly due to better pricing and the stronger US dollar against the Australian dollar and Brazilian Real. Alumina received $45 million in capital and income for the quarter including proceeds from the sale of the Jamalco refinery. Most of the money was used to reduce debt. Alumina’s net debt to the end of 2014 is now around $87 million. Shares in Alumina are trading 5.04 per cent stronger at $1.98.
Carnarvon Petroleum Limited
(ASX:CVN) says it is making a strategic investment from existing cash to identify further oil and gas prospects in its Phoenix area project. Carnarvon holds four exploration permits in the area which lies in the hydrocarbon rich region between the Carnarvon and Browse Basins off the coast of Western Australia. Carnarvon and its partners plan to use 3D and 2Dseismic data to identify new prospects and find leads for future drilling programs. Carnarvon will spend about $10 million on gathering further data which should complete a data set covering the 22,000 square kms of permit holdings. Shares in Carnarvon are trading 1.85 per cent higher at $0.14.
Best and worst performers
The best performing sector is telco services, gaining 0.4 per cent to 2,114. Shares in M2 Group have risen 0.86 per cent and are trading at $8.18. Shares in Singapore Telecom and Telstra are also stronger.
The worst performing sector is energy, falling 2.1 per cent to 10,710. Shares in Horizon Oil have fallen 7.14 per cent, trading at $0.13. Shares in Whitehaven Coal and Senex Energy are also lower.
Gold and the dollar
Gold is trading at $US1,233 an ounce.
The Australian dollar is buying 81.47 US cents.
