Following negative leads, the Australian share market sank at open and is 1 per cent down at noon. The falls come after America’s stronger than expected jobs report on Friday increased the chances of a rate rise. All sectors are trading in the red, led by weakness among property stocks and mining companies.
The S&P/ASX 200 index is 57 points down at 5,842. On the futures market the SPI is 59 points lower.
Company news Oil and gas producer Santos Limited
(ASX:STO) has struck a new gas supply deal with Australia’s biggest alumina producer Alcoa Inc
(ASX:AAI) Under the agreement Santos will supply 82 petajoules of natural gas from the John Brookes field from 2018. The deal is for an initial contract term of five years but also allows for two five-year extension options by mutual agreement. Shares in Santos are trading 2.93 per cent lower at $7.61 at noon.
Commonwealth Bank of Australia
(ASX:CBA) has announced changes to its board focussed on adding skills and insights into technology. CBA has appointed Wendy Stops as a director, effective immediately, replacing Carolyn Kay who will leave at the end of the month. The bank describes Ms Stops as a globally experienced senior management executive in the IT and consulting sectors. Shares in Commonwealth Bank of Australia are trading 0.45 per cent lower at $90.68 at noon.
Best and worst performers The sector with the least losses is financials excluding real estate investment trusts, easing 0.6 per cent to 8,014. Shares in QBE Insurance Group Limited
(ASX:QBE) have risen 2.61 per cent and are trading at $13.78. Shares in Steadfast Group Limited
(ASX:SDF) and ASX Limited
(ASX:ASX) are also stronger.
The worst performing sector is real estate investment trusts, sinking 2.7 per cent to 1,295. Shares in Westfield Corp Limited
(ASX:WFD) have fallen 3.05 per cent, trading at $9.54. Shares in Goodman Group
(ASX:GMG) and Scentre Group Limited
(ASX:SCG) are also lower.
IPOs Spring FG Limited
(ASX:SFL) started trading today. The provider of financial services floated with an issue price of $0.30, opened at $0.40 and is currently trading at $0.40.
Gold and the dollar
Gold is trading at $US1,171 an ounce. The Australian dollar is buying 77.18 US cents.
