Making a come-back: Aus shares track 0.08% lower at noon

Market Reports

by Carolyn Herbert

The Australian share market has made a remarkable come-back in the first two hours of trade after falling at the open after a lack-lustre lead from the US. The local bourse has gathered momentum throughout the session and is now tracking flat or 0.08 per cent lower at noon. While most sectors are mixed at the moment, utilities are leading the charge. Energy is proving to be the biggest drag on the market after the price of oil came off overnight on new inventory data from the US.

The S&P/ASX 200 index is 6 points down at 5,322. On the futures market the SPI is 7 points higher.

Economic news

The Australian jobless rate has held steady for the month of October at 5.6 per cent, according to the latest figures from the Australian Bureau of Statistics. However the number of people looking for work remained at its lowest level in 10 years.

Company news

Telstra Corporation (ASX:TLS) has addressed investors today and has announced refinements to its corporate strategy and growing its core business. Australia’s largest telco says it plans to reduce net underlying core fixed costs by over $1 billion by FY21. It will invest more than $3 billion into the company to improve customer experience, including 1.5 billion into building networks of the future.Shares in Telstra are trading up 1.3 per cent at $4.78.

Cudeco Limited (ASX:CDU) says that it expects to recommence mining operations in 2017, delivering around 200 new jobs in total. The company says while it understands the trading halt has been frustrating for investors, it is seeing continued increases at its Rocklands Copper mine with a daily production of 6,655 tonnes of ore, and one week production rate of more than 35,000 tonnes. Shares in Cudeco last traded at $0.43.

Best and worst performers

The best performing sector is Utilities, gaining 1.7 per cent to 6,928. Shares in AGL Energy have risen 2.35 per cent and trading at $20.03. Shares in AusNet and Spark Infrastructure are also stronger.

The worst performing sector is Energy, falling 1.5 per cent to 8,440. Shares in Santos have fallen 2.83 per cent, trading at $3.95. Shares in Worley Parsons and Woodside are also lower.

Gold and the dollar

Gold is trading at $US1,228 an ounce.
The Australian dollar is buying $US0.7473




 

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