It has been a negative start to the trading session for the Australian share market, despite SPI futures showing a flat open. The local bourse plunged at the open and has continued to lose momentum in the first two hours of trade, tracking 0.8 per cent lower at noon. The Materials and Energy sectors are proving to be the biggest drag on the market so far after the price of commodities took a tumble overnight. We’ve also seen some selling in the telcos with Vocus Group
(ASX:VOC) losing around 2.5 per cent and Telstra
(ASX:TLS) shedding around 1.2 per cent. Consumer Discretionaries and Utilities are bucking the trend, both tracking around 0.2 per cent higher.
The S&P/ASX 200 index is 47 points down at 5,742. On the futures market the SPI is 46 points lower.
Asian marketsChecking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.2 per cent, Hong Kong’s Hang Seng has added 0.1 per cent and the Shanghai Composite has gained 0.1 per cent.
Local economic newsSome key Industry earnings for 2015-16 has been released by the Australian Bureau of Statistics. Rental, hiring and real estate services grew by 14 per cent to $6.8 billion for the year. Education and training grew by 19.6 per cent and the mining industry contracted by 17.5 per cent.
Company newsTelstra Limited
(ASX:TLS) has informed the market that the ACCC has finalised its decision on the regulation of high speed internet services supplied by non-NBN fixed line networks. The decision sets wholesale prices and other terms and conditions which will provide customers with a larger number of retailers to choose from and deliver them better prices and services. However Telstra’s fibre networks are subject to different pricing arrangements. Shares in Telstra are trading down 1.22 per cent at $4.45.
SurfStitch Limited
(ASX:SRF) has gone into suspension from official quotation following the receipt of a Statement of Claim against it. The embattled surf wear retailer says shareholders have brought a class action, alleging the company engaged in misleading and deceptive conduct and that it failed to comply with its continuous disclosure obligations. The SurfStitch share price has tumbled from 45 cents a year ago, to 6.8 cents this week. Shares in SurfStitch last traded at $0.068.
Best and worst performersThe best performing sector is Consumer Discretionaries, gaining 0.2 per cent to 2,208. Shares in JB Hi Fi
(ASX:JBH) have risen 3.39 per cent and trading at $23.15. Shares in Super Retail Group
(ASX:SUL) and Aristocrat Leisure
(ASX:ALL) are also stronger.
The worst performing sector is Energy, falling 1.75 per cent to 9,552. Shares in Myer
(ASX:MYR) have fallen 4 per cent, trading at $0.84. Shares in Seven West Media
(ASX:SWM) and Flight Centre
(ASX:FLT) are also lower.
Gold and the dollarGold is trading at $US1,257 an ounce and the Australian dollar is buying $US0.7432.
