Woeful Wednesday as ASX falls 1.35% at noon

Market Reports

by David Chau

This morning, the Australian share market plunged at the open, falling below the 5,400 points mark. Its downward trajectory seems to be continuing, and every sector is in the red right now.

The Australian dollar lifted after the ABS released the latest CPI figures. However, dragging the share market down is today’s weakest performer – Wesfarmers, due to its Coles supermarkets facing a slow-down in sales growth. Ardent Leisure has also continued to fall after the tragedy at its Dreamworld theme park yesterday, which killed four people.

The S&P/ASX 200 is 72 points down at 5,371,. And on the futures market the SPI is 76 points lower.

Economic news

The ABS has released better-than-expected September quarter inflation data. The headline consumer price index (CPI) was up 0.7%, which brings the annual rate to 1.3%.

As for core inflation, that has weakened a little in the September quarter – increasing 0.4%, and this means the annual rate is unchanged at 1.7%.

Company news

Sandfire Resources NL (ASX:SFR) has increased its stake in Northern American copper company, Tintina Resources, from 57% to 61%. Sandfire did so by subscribing for its entitlement as part of a rights issue for C$4.2 million. The company says the proceeds will be used to progress permitting and development plans for Tintina’s flagship Black Butte Copper project in the American state of Montana. Shares in Sandfire Resources are trading down 0.2 per cent at $5.05.

ResMed Inc’s (ASX:RMD) revenue for the September quarter rose 13% to $465.4 million, compared to the same period last year. The company says it had a solid start to the fiscal year with a 13% constant currency revenue growth led by its Brightree software offering and global device sales. Shares in ResMed are trading down 2.44 per cent at $8.20.

Best and worst performers

Today's best performing sector (or the one which suffered the least losses) is Materials, losing 0.6 per cent to 9,176. Shares in Saracen Mineral Holdings are up 3.6 per cent and are trading at $1.22. Shares in Independence Group and Resolute Mining are also stronger.

The worst performing sector is Staples, falling 2.9 per cent to 8,962. Shares in Wesfarmers have fallen by 5.07 per cent, and are trading at $41.73. Shares in Bellamy’s and A2 Milk are also lower.

IPOs

CFOAM Ltd (ASX:CFO) started trading today. The company produces an "ultra-high performance" carbon product, and it floated with an issue price of $0.20.

CFOAM opened at $0.60 and is currently trading at $0.555.

Gold and the dollar

Gold is trading at $US1,275 an ounce.
The Australian dollar has risen to $US0.7691. 

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