Monday sell-off: Aus shares 1.15% lower at noon

Market Reports

by Carolyn Herbert

It has been a disappointing start to the trading week for the Australian share market. What was looking like a flat open has now turned into an absolute free-fall, with the market down 1.15 per cent at noon. Whilst all sectors are in the red this morning, the materials space and the financials sector are proving to be the biggest drag on the market, with all of the big four banks shedding between 1 and 1.5 per cent. We have however seen a rebound in the gold stocks this session after they were sold off towards the end of the week.

The S&P/ASX 200 index is 66 points lower at 5,648. On the futures market the SPI is 58 points lower.

Company news

Orocobre Limited (ASX:ORE) has announced in its December quarterly that lithium production at its Olaroz Lithium Facility increased 17 per cent to 3,529 tonnes on the previous corresponding period. The company maintains a strong cash position of $30 million at the end of the quarter. The lithium producer says it expects continuing tight market dynamics in lithium markets with new supply being available later than forecast. Shares in Orocobre are down 5.77 per cent at $4.50.

Beadell Resources Limited (ASX:BDR) says gold production for the December quarter came in at 42,373 ounces. Annual production came in at 145,870 ounces for CY2016, that’s a 19 per cent increase on the previous year and in line with guidance. Shares in Beadell Resources are trading up 1.67 per cent at $0.30.

Best and worst performers

The sector with the least losses is Staples, losing 0.8 per cent to 8,876. Shares in Bellamy’s (ASX:BAL) have risen 2.04 per cent and trading at $4.01. Shares in A2 Milk (ASX:A2M) are stronger and Treasury Wine Estates (ASX:TWE) is weaker.

The worst performing sector is Materials, falling 1.3 per cent to 10,306. Shares in Orocobre (ASX:ORE) have fallen 5.77 per cent, trading at $4.50. Shares in South32 (ASX:S32) and Sandfire Resources (ASX:SFR) are also lower.

Gold and the dollar

Gold is trading at $US1,194 an ounce and the Australian dollar is buying $US0.7553.




 

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