Following mixed leads from Wall Street, the Australian share market fell into the red at the open and has continued to drift lower in the first two hours of trade, losing 0.86 per cent at noon. While most sectors are in negative territory so far this session, it’s the Financials space that is proving to be the biggest drag on the market, with the big four banks all losing around 1.5 per cent. We’ve also seen selling in the Consumer Staples and Industrials sectors. The only sector to buck the trend today is Materials, thanks to a jump in the big iron ore miners as well as the gold stocks.
The S&P/ASX 200 index is 48 points down at 5,803. On the futures market the SPI is 53 points lower.
Asian marketsChecking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.49 per cent, Hong Kong’s Hang Seng has lost 0.17 per cent and the Shanghai Composite is practically flat.
Economic newsAustralian wages have increased 0.5 per cent for the March quarter 2017 seasonally adjusted, according to latest figures from the Australian Bureau of Statistics. Wages grew 1.9 per cent over the past 12 months. Western Australia recorded the lowest through the year wage growth and Tasmania the highest.
Company newsOrotonGroup Limited
(ASX:ORL) has provided a trading update to the market saying the Group’s April mid-season sales were below management’s expectations and reflected a further decline from that seen in the first half. The company says poor and competitive market conditions will continue during end of season sales in June and July and will further adversely impact financial performance for the rest of FY17. Underlying EBITDA is now forecast to be $2 million to $3 million for FY17, compared to $12.9 million in the previous year. Shares in OrotonGroup are trading down 22.22 per cent at $1.05.
AusCann Group Limited
(ASX:AC8) has gone into a trading halt, pending the release of a market sensitive announcement. The medicinal cannabis company which floated on the ASX at the start of the year says the announcement relates to a capital raising. The trading halt will remain in place until Friday at the latest. Shares in AusCann last traded at $0.58.
Best and worst performersThe best performing sector is Materials, gaining 0.67 per cent to 9,753. Shares in Resolute Mining
(ASX:RSG) have risen 4.53 per cent and trading at $1.21. Shares in St Barbara
(ASX:SBM) and Saracen Minerals
(ASX:SAR) are also stronger.
The worst performing sector is Financials excluding REITS, falling 1.47 per cent to 7,317. Shares in CYBG
(ASX:CYB) have fallen 3.79 per cent, trading at $4.82. Shares in Challenger Financial
(ASX:CGF) and Eclipx Group
(ASX:ECX) are also lower.
Commodities and the dollarGold is trading at $US1,243 an ounce and the Australian dollar is buying $US0.7416.
