Following a plunge in commodity prices overnight, the local share market opened in negative territory and is currently tracking 0.05 per cent lower at noon. The materials space is proving to be the biggest weight on the index, with BHP and Rio Tinto leading the losses and shedding around 5 and 4 per cent respectively. The energy space is also in the red after the price of Brent crude declined overnight.
The S&P/ASX 200 index is 3 points lower at 5,318. On the futures market the SPI is down 9 points.
Company news Ausenco Limited
(ASX:AAX) has commenced a $91 million EPC contract with Atlantic Gold for the Moose River Consolidated Gold Project in Nova Scotia, Canada. Atlantic Gold is finalising its project financing including raising new equity and finalising the debt funding facilities for the project. The company says despite volatile markets, interest in developing and financing gold projects was quite strong. Shares in Ausenco are trading up 1.3 per cent at $0.39.
YPB Group Limited
(ASX:YPB) has entered into a ten year contract with an entity associated with Sachin Tendulkar to assist in developing YPB’s business and presence in the Indian market. Following on from this engagement YPB intends to develop sales and support presence in major cities across India for its anti-counterfeit technology. Shares in YPB Group are trading up 6 per cent at $0.27.
Best and worst performers
The best performing sector is Financials excluding REITs, gaining 0.9 per cent to 6,726. Shares in Lendlease have risen 3.23 per cent and trading at $13.42. Shares in Macquarie Group and Magellan Financial Group are also stronger.
The worst performing sector is Materials, falling 2.7 per cent to 7,691. Shares in Sims Metals Management have fallen 7.45 per cent, trading at $8.70. Shares in Bluescope Steel and Western Areas are also lower.
Gold and the dollar
Gold is trading at $US1,264 an ounce.
The Australian dollar is buying $US0.7318.
