Despite strong leads the local market opened lower eroding some of yesterday’s gains. At midday the local bourse was down 0.2 per cent.
Mining and energy stocks pulled back while utilities and health care stocks supported the market today.
The S&P/ASX 200 index is 12 points down at 5,545. On the futures market the SPI is 14 points lower.
Company news
Rio Tinto Limited
(ASX:RIO) says its majority owned Energy Resources will not proceed with the final feasibility study of the Ranger 3 Deeps project at this time. The company says the project faces economic challenges and it backs ERA’s approach and has flagged a potential write down of $US300 million. Shares in Rio TInto are trading down 1.15 per cent at $56.82. While ERA shares slumped nearly 50 per cent.
Downer EDI Limited
(ASX:DOW) has won a contract for work on the Ararat Wind Farm Project in Victoria worth around $130 million. The engineering and construction company says it construct the transmission network, infrastructure, logistics as well as erecting the wind turbines. Shares in Downer are trading down 0.79 per cent at $5.02
Best and worst performers The best performing sector is utilities, gaining 0.8 per cent to 6,631. Shares in APA Group
(ASX:APA) have risen 0.81 per cent and trading at $8.68. Shares in AGL Energy Limited
(ASX:AGL) and Spark Infrastructure Group
(ASX:SKI) are also stronger.
The worst performing sector is materials, falling 0.7 per cent to 9,163. Shares in Western Areas Limited
(ASX:WSA) have fallen 1.88 per cent, trading at $3.66. Shares in Nufarm Limited
(ASX:NUF) and OZ Minerals Limited
(ASX:OZL) are also lower.
Gold and the dollar
Gold is trading at $US1,183 an ounce.
The Australian dollar is buying $US0.7754
