The Australian sharemarket has followed Wall Street leads lower as bearish commodities prices prompt big falls in the miners and energy stocks. The local bourse plunged on open and is 0.75 per cent down at noon.
The S&P/ASX 200 index is 37 points down at 5,118. On the futures market the SPI is 27 points lower.
Company news
Insurance Australia Group Limited
(ASX:IAG) has announced a new organisational structure and leadership team to drive what Managing Director and CEO Peter Harmer described as the group’s future profitability and growth. The company named a string of new appointments to its Australian business and consumer sectors. Mr Harmer also announced that IAG’s Asia and New Zealand business will move into a new International Division. Shares in Insurance Australia Group are trading down 0.7 per cent at $5.69.
Orica Limited’s
(ASX:ORI) net profit is set to take a $36 million hit following a ruling by the Federal Court. The case is related to refinancing transactions entered into by Orica subsidiaries between 2002 and 2004. Orica has 21 days to appeal the Federal Court’s decision. Shares in Orica are trading down 2.05 per cent at $15.27.
Best and worst performers
The best performing sector is REITs, gaining 0.8 per cent to 1,286. Shares in Mirvac Group have risen 2.27 per cent and trading at $1.91. Shares in GPT Group and Dexus Property Group are also stronger.
The worst performing sector is Energy, falling 6.5 per cent to 7,584. Shares in Oil Search have fallen 16.22 per cent, trading at $6.30. Shares in LNG and Santos are also lower.
Commodities
Gold is trading at $US1,072 an ounce.
The Australian dollar is buying $US0.7267
