Following a horror session on the local market yesterday, we find ourselves once again in negative territory, but it’s not as bad as everyone expected we’ve managed to claw back some early losses and are now tracking 0.38 per cent lower at noon. Brexit fears and uncertainty surround interest rates in the US has once again seen investors sell-off across the board with the materials and financials sectors leading the losses. We’ve also seen broad-based losses across the Telcos space, with TPG Telecom the only one bucking the trend.
The S&P/ASX 200 index is 20 points lower at 5,183. On the futures market the SPI is down 19 points.
Company news Elders Limited
(ASX:ELD) have placed their shares into a trading halt pending the release of an announcement by the company. The company proposes to announce both a capital raising and an-on market offer by one of its controlled entities to purchase its hybrid securities. The halt will remain in place until this Friday or when the announcement is released to the market. Shares in Elders last traded at $3.63.
Air New Zealand Limited
(ASX:AIZ) says it will be participating in the rights issue announced by Virgin Australia earlier today. Virgin says the $852 million capital raising will strengthen the airline’s balance sheet and improve earnings and cash flow. Air New Zealand announced its 19.98 per cent sale to Nanshan Group last week. It says it will subscribe for Nanshan Group’s entitlements via a sub-underwriting agreement. Shares in Air New Zealand are trading up 2.01 per cent at $2.03.
Best and worst performers
The best performing sector is Staples, gaining 0.5 per cent to 8,331. Shares in Bellamy’s Australia have risen 4.71 per cent and trading at $11.00. Shares in Asaleo Care and Wesfarmers are also stronger.
The worst performing sector is Materials, falling 1.2 per cent to 7,AC814. Shares in Oz Minerals have fallen 3.96 per cent, trading at $5.34. Shares in Sandfire Resources and Iluka Resources are also lower.
Gold and the dollar
Gold is trading at $US1,283 an ounce.
The Australian dollar is buying $US0.7342.
