Following negative leads from the US, the Australian share market opened sharply lower and is 2 per cent down at noon.
Investors are punishing ANZ for a $2.5 billion capital raising with those shares down over 8 per cent in opening trade.
The S&P/ASX 200 index is 104 points down at 5,506. On the futures market the SPI is 86 points lower.
Company news
Explosives maker Orica Limited
(ASX:ORI) says it will take a $1.65 billion write-down because of the continued downturn in the mining industry and a glut in the ammonium nitrate market. The company is also reviewing its on-market share buyback announced in March. Shares in Orica are getting smashed today plunging 16.83 per cent to $15.66.
Fairfax Media Limited
(ASX:FXJ) has sold off its Chullora print site in NSW for $45 million to Charter Hall Group. The site was built for $315 million and underwent a $70 million upgrade in 2001. Fairfax recently sold its Melbourne based print shop for $16 million. The media group is undergoing a deep cost cutting exercise as it transitions from a print based distribution platform. Shares in Fairfax slipped 1.16 per cent to $0.85.
Best and worst performers
All sectors are lower in morning trade. The sector with the least losses is consumer discretionary down 0.5 per cent to 1,886. Shares in Slater & Gordon have risen 5.36 per cent and are trading at $3.34. Shares in G8 Education and Breville are also stronger.
The worst performing sector is financials excluding REITS, falling 2.7 per cent to 7,335. Shares in ANZ are trading 6.91 per cent lower at $30.33. Shares in Covermore and Westpac are also sinking.
Gold and the dollar
Gold is trading at $US1,089 an ounce.
The Australian dollar is buying 73.69 US cents.
