Banks bounce: Aus shares flat at noon

Market Reports

by Carolyn Herbert

It has been a lack-lustre start for the Australian share market this Monday session following on from flat leads from Wall Street on Friday. The local bourse opened in the red this morning but has since clawed back those losses and is now tracking practically flat or 0.1 per cent lower at noon. The financials space is leading the charge so far this session with gains in CBA, ANZ and Westpac. Consumer Discretionaries are being hit the hardest with losses in Crown Resorts following news 18 staff members had been detained in China.

The S&P/ASX 200 index is 9 points down at 5,425. On the futures market the SPI is 11 points lower.

Company news

Independence Group NL (ASX:IGO) has advised that ore commissioning of the processing plant at IGO’s 100 per cent Nova Project has commenced approximately four weeks ahead of schedule. The company says it now expects it will produce first concentrate ahead of time in November this year. The nickel/copper/gold miner also says the project continues to be on budget. Shares in Independence Group are trading up 2.47 per cent at $3.94.

MMA Offshore Limited (ASX:MRM) has provided an update on its earnings forecasts saying full year operating EBITDA will now be in the order of $20- 25 million. The company says the market will continue to be challenging through the 2017 financial year, but an improvement should be seen as offshore drilling and construction activity starts to increase. MMA Offshore says it continues to revue further opportunities for cost reductions in the business. Shares in MMA Offshore are trading down 4.29 per cent at $0.34.

Best and worst performers

The best performing sector is Financials, gaining 0.26 per cent to 6,023. Shares in OzForex have risen 1.19 per cent and trading at $1.70. Shares in CYBG and Steadfast Group are also stronger.

The worst performing sector is Discretionaries, falling 1.41 per cent to 2,154. Shares in Crown Resorts have fallen 9.11 per cent, trading at $11.77. Shares in SkyCity and The Star Entertainment Group are also lower.

Gold and the dollar

Gold is trading at $US1,253 an ounce.
The Australian dollar is buying $US0.7598.


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