Today marks the third straight session in the red for the Australian share market, with the local bourse once again struggling for momentum. After opening lower, the ASX200 is yet to have a stint in positive territory and is tracking 0.2 per cent lower at noon. The materials space continues to be sold off after a drop in commodity prices overnight, however we have seen a small bounce in the gold stocks. Financials namely the big four banks are leading the charge so far with the likes of CBA gaining around 0.8 per cent.
The S&P/ASX 200 index is 12 points down at 5,446. On the futures market the SPI is 12 points lower.
Private sector credit has dropped to 5.3 per cent for September, compared to 5.4 per cent in August. We have also seen a drop in dwelling approvals for October by 3.3 per cent, as shown in recent data released by the Australian Bureau of Statistics.
Lynas Corporation Limited (ASX:LYC) has told shareholders that the sustained low rare earths prices have directly affected the company’s financial performance and ability to service its debt commitments. However in FY17, the rare earths miner says it will continue to engage productively with strategic customers to build long term relationships. Shares in Lynas Corporation are trading down 1.47 per cent at $0.07.
Ingenia Communities Group Limited (ASX:INA) has signed contracts to acquire the Palms Oasis Caravan Park at Blueys Beach on the NSW coast. The caravan park is being acquired for $7.5 million and offers immediate earnings accretion with potential for enhanced returns through reinvestment in the existing community and the development of further permanent homes. The seniors’ accommodation provider says Blueys Beach is an attractive location that appeals to both retirees and holiday makers.Shares in Ingenia are trading up 1.1 per cent at $2.76.
Best and worst performers
The best performing sector is REITs, gaining 0.4 per cent to 6,123. Shares in QBE Insurance have risen 1.62 per cent and trading at $11.28. Shares in Steadfast Group and Genworth Mortgage are also stronger.
The worst performing sector is Materials, falling 2.3 per cent to 9,452. Shares in Sandire Resources have fallen 6.65 per cent, trading at $5.69. Shares in Western Areas and Mineral Resources are also lower.
Commodities and the dollar
Gold is trading at $US1,191 an ounce.
The Australian dollar is buying $US0.7478.