Following weak leads from Wall Street thanks to a sell-off in energy stocks for a fifth straight session, the Australian share market opened in negative territory. However, some strength in the materials and energy space locally has allowed the index to erase some of its early losses and it is currently tracking 0.1 per cent lower at noon.
The S&P/ASX 200 index is 5 points lower at 5,104. On the futures market the SPI is down 1 point.
Company news
Rio Tinto
(ASX:RIO) has taken the axe to its capital expenditure following the fall of iron ore prices below the US $40 per tonne handle. The mining giant is slashing another $1.5 billion over the next two years and it’s the third time this year the company has cut its capex guidance. Shares in Rio Tinto are trading 1.6 per cent lower at $41.72.
Avita Medical Limited
(ASX:AVH) says a series of 12 cases showed length of hospital stay decreased by 63 per cent for patients suffering extensive burns when treated with its ReCell product. ReCell first gained prominence as a treatment for burns victims following the 2002 Bali bombings. Shares in Avita Medical are trading down 1.03 per cent at $0.10.
Best and worst performers
The best performing sector is Energy, gaining 0.95 per cent to 7,671. Shares in Karoon Gas have risen 4.11 per cent and trading at $1.65. Shares in Worley Parsons and Santos are also stronger.
The worst performing sector is Telcos, falling 0.7 per cent to 1,933. Shares in Telstra have fallen 0.84 per cent, trading at $5.32. Shares in TPG Telecom and lower and shares in Vocus are flat.
Commodities
Gold is trading at $US1,076 an ounce.
The Australian dollar is buying 72.29 US cents.
