The Australian share market has followed a weak lead from US markets, opening in the red and continuing to lose momentum in the first two hours of trade, tracking 0.49 per cent lower at noon. Telcos are continuing to be sold off, with losses of around 1.3 per cent in Telstra
(ASX:TLS) and 2.7 per cent in Vocus Communications
(ASX:VOC). There has also been some profit taking in all of the big four banks with losses of around 1 per cent. Industrials and Utilties are bucking the trend.
The S&P/ASX 200 index is 29 points down at 5,848. On the futures market the SPI is 22 points lower.
Asian marketsJapan’s Nikkei has lost 1 per cent, Hong Kong’s Hang Seng has lost 0.3 per cent and the Shanghai Composite is flat.
Company newsMesoblast Limited
(ASX:MSB) has announced that it has received $3.7 million from the Australian government for research and development activities conducted in FY16. The funds were provided to Mesoblast under the Federal Governments R & D tax incentive program, which is designed to support industry innovation. The FDA has also just cleared the company’s heart disease trial at Harvard’s Children’s Hospital. Shares in Mesoblast are trading down 2 per cent at $2.45.
Cardinal Resources Limited
(ASX:CDV) has been placed into a trading halt, pending completion of the book-build for the proposed capital raising announced today. The gold miner will undertake a placement to sophisticated and professional investors of up to 35.5 million shares at $0.50 cents per share. The funds will be used towards diamond drilling at the company’s Namdini Gold Project in Ghana. Shares in Cardinal Resources last traded at $0.57.
Best and worst performersThe best performing sector is Utilities, gaining 0.3 per cent to 8,676. Shares in AGL
(ASX:AGL) have risen 1.4 per cent and trading at $26.76. Shares in Spark Infrastructure
(ASX:SPK) and AusNet Services
(ASX:AST) are flat.
The worst performing sector is Telcos, falling 1.3 per cent to 1,614. Shares in Vocus Communications
(ASX:VOC) have fallen 2.67 per cent, trading at $4.01. Shares in Telstra
(ASX:TLS) and TPG Telecom
(ASX:TPM) are also lower.
IPOsTodd River Resources Limited
(ASX:TRT) started trading today. The exploration company floated with an issue price of $0.20, opened at $0.22 and is currently trading at $0.225.
Gold and the dollarGold is trading at $US1,255 an ounce and the Australian dollar is buying $US0.7551.
