Strong leads from the US saw the local market push higher on open but gains were quickly reversed into negative territory. The market swayed around the morning's open and by midday was 0.06 per cent lower.
News of slowing iron ore output by BHP has helped mining stocks. Rio and BHP have both gained while Fortescue Metals is up more than 10 per cent as it ups its oversubscribed high yield bond issue.
The S&P/ASX 200 index is 3 points down at 5,835. On the futures market the SPI is 9 points lower.
Company news
Shares in Fortescue Metals Group Limited
(ASX:FMG) have jumped more than 10 per cent as it increases its bond offering to $2.3 billion due to high demand. The miner released $1.5 billion in senior secured notes this morning and it was soon upsized. CEO Nev Power says the companies 2017 and 2018 debt will be repaid in full with its 2019 debt to be refinanced. Shares in Fortescue are trading up 10.76 per cent at $2.11
CSL Limited
(ASX:CSL) will begin the hunt for a new CFO as it’s announced Gordon Naylor will leave the role to lead the company’s new global flu vaccine business. The biopharmaceutical company says Mr Naylor has served as Chief Financial Officer since 2010 and the move comes after acquiring the Novartis flu vaccine business for $US275 million. An international search will now begin to find Mr Naylor’s successor. Shares in CSL are trading up 0.48 per cent at $93.04
Best and worst performers The best performing sector is materials, gaining 1 per cent to 9,210. Shares in Fortescue Metals Group Limited
(ASX:FMG) have risen 10.76 per cent and trading at $2.11. Shares in Nufarm Limited
(ASX:NUF) and Arrium Limited
(ASX:ARI) are also stronger.
The worst performing sector is utilites, falling 0.5 per cent to 6,618. Shares in APA Group
(ASX:APA) have fallen 0.87 per cent, trading at $9.09. Shares in AusNet Services
(ASX:AST) and AGL Energy Ltd
(ASX:AGL) are also lower.
Gold and the dollar
Gold is trading at $US1,186 an ounce.
The Australian dollar is buying $US0.7723
