Midday: ASX selloff on Chinese plunge

Market Reports

Selling sent the local bourse sharply lower at open this morning and with a slight recovery towards midday the market’s down 0.8 per cent. 
The slump followed selling on Wall street with blame levelled squarely on a major correction that has decimated Chinese stocks. Indexes like the Shanghai composite were in free-fall before the central government halted trading of huge numers of listed stocks amongst a range of other regulatory controls.
The fallout is unclear but pessimism is certainly flowing onto the ASX today and this was compounded by a record fall in the iron price. 
The S&P/ASX 200 index is 49 points down at 5,421. On the futures market the SPI is 31 points lower.
Economic news

The ABS has shown the unemployment rate has remained steady at 6 per cent in June after the May figure was revised down to 5.9 per cent.
Company news
Shares in Orthocell Limited (ASX:OCC) have defied the day’s selloff on news it’s received a $430,000 grant to progress its laboratory grown tendon project. The regenerative medicine company will work with leading Australian universities and says its ability to demonstrate the growth of human tendon outside the body already generated a significant amount of international interest. Orthocell says a fabricated human tendon would meet a significant unmet patient need. Shares in Orthocell are trading up 2.63 per cent at $0.39 
Advanced manufacturer Quickstep Holdings Limited (ASX:QHL) has secured its first global automotive parts project. The order is expected within weeks and comes from a major car manufacturer to produce a run of carbon fibre engine parts. Managing Director David Marino says the deal demonstrates the company’s serial production capabilities and represents early success for its strategy. Shares in Quickstep are trading up 7.25 per cent at $0.18 
Best and worst performers

All major sectors were lower today. The sector with the least losses was telcos, down 0.1 per cent to 2,177. Shares in Spark New Zealand Limited (ASX:SPK) have risen 1.2 per cent and trading at $2.53. Shares in Telstra Limited (ASX:TLS) have gained while iiNet Limited (ASX:IIN) are lower. 
The worst performing sector is energy, falling 1.8 per cent to 10,448. Shares in Paladin Energy Limited (ASX:PDN) have fallen 9.3 per cent, trading at $0.20. Shares in Liquefied Natural Gas Limited (ASX:LNG) and Worleyparsons Limited (ASX:WOR) are also lower.

REFFIND Limited (ASX:RFN) started trading today. The cloud based job referral service floated with an issue price of $0.20, opened at $0.245 and is currently trading at $0.22.
Gold and the dollar

Gold is trading at $US1,158 an ounce.
The Australian dollar is buying $US0.7443

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?