Midday: ASX gains as mining & energy slump

Market Reports

Following positive leads the Australian share market has risen 0.5 per cent as traders get back to work after Australia Day. Most sectors are trading higher led by health and tech stocks following the election of Greece’s anti-austerity party. 
 
Lower commodity prices have pushed mining and energy sectors to the worst performers with the gold sub-index sinking almost 3 per cent. Shares in rare earths producer Lynas Corporation Limited (ASX:LYC) and gold miner Silver Lake Resources Limited (ASX:SLR) have slumped after releasing quarterly reports. 
 
Liquefied Natural Gas Limited (ASX:LNG) is the benchmark’s best performer after unveiling its quarterly highlights including a cash balance of $53.2 million and no debt.  
 
Figures
 
The S&P/ASX 200 index has risen 25 points to 5,527. On the futures market the SPI is 31 points higher. 
 
Company news
 
Shares in NewSat Limited (ASX:NWT) have plunged after the pure-play satellite communications company warned on its Jabiru-1 satellite project financing and construction arrangements. NewSat says given the delays in the recommencement of debt funding its payments to satellite manufacturer Lockheed Martin have become overdue. The company is confident, if debt funding starts up again and payment is made to Lockheed Martin, the construction of the satellite will not slow down or be stopped. It appears investors are not convinced with shares in NewSat plunging 21.43 per cent to $0.11 at noon. 
 
Shares in Funtastic Limited (ASX:FUN) have retreated after responding to a price query.  The toy manufacturer has blamed the stock’s movement on an institutional shareholder who was required to lower their stake in the company. Funtastic has also flagged an interim EBITDA loss due to the deterioration in the company’s second quarter performance. However, Funtastic says it is not aware of any connection between the share sale and earnings forecast as the company had not given guidance for that period to anyone. Shares in Funtastic have retreated 16.67 per cent to $0.03 at noon.
 
Best and worst performers
 
The best performing sector is health care, gaining 1.7 per cent to 17,810. Shares in ResMed Inc. (ASX:RMD) have gained 8.14 per cent and trading at $8.44. Shares in Cochlear Limited (ASX:COH) and Virtus Health Limited (ASX:VRT) are also stronger. 
 
The worst performing sector is materials, falling 1.2 per cent to 8,656. Shares in Lynas Corporation Limited (ASX:LYC) have dropped 10.48 per cent, trading at $0.06. Shares in Arrium Limited (ASX:ARI) Beadell Resources Limited (ASX:BDR) are also lower. 
 
Gold and the dollar
 
Gold is buying $US1,275 an ounce. 
The Australian dollar is buying $US0.7913.

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