Despite yesterday’s stellar trading session, the local share market has once again found itself back in negative territory. The local bourse dropped at the open and has continued to lose momentum in the first two hours of trade and is tracking 0.33 per cent lower at noon. The consumer staples space along with the energy sector are proving to be the biggest drag on the market, after Bellamy’s tumbled more than 40 per cent following a business update to the market. We’ve also seen losses in the big miners as well as the big four banks.
The S&P/ASX 200 index is 18 points down at 5,482. On the futures market the SPI is 16 points lower.
GrainCorp Limited (ASX:GNC) has informed the market that US-listed Archer Daniels Midland Company has entered into an agreement to sell its 19.9 per cent ownership in the company for $387 million. Under the agreement ADM will sell all its capital in Graincorp at a price of $8.53 per share. ADM is one of the world’s largest agricultural processors and food ingredient providers. Shares in Graincorp are trading up 2.53 per cent at $8.93.
Genex Power Limited (ASX:GNX) says it has achieved a number of milestones as the company moves towards financial close for its Kidston Solar Project. The renewable energy company has received credit approval for a debt facility of up to $110 million. It also says it will now commence the construction program at Kidston targeting completion in 2017. Shares in Genex Power are trading up 14.55 per cent at $0.32.
Best and worst performers
The best performing sector is Discretionaries, gaining 0.03 per cent to 2,098. Shares in Fairfax have risen 2.99 per cent and trading at $0.86. Shares in Retail Food Group and Nine Entertainment are also stronger.
The worst performing sector is Energy, falling 0.7 per cent to 9,076. Shares in Caltex have fallen 2.97 per cent, trading at $29.43. Shares in Woodside and Santos are also lower.
Gold and the dollar
Gold is trading at $US1,175 an ounce.
The Australian dollar is buying $US0.7429.