It has been a dismal start to the trading session for the Australian share market, following weaker leads from Wall Street overnight. The local bourse dropped into the red at the open, with the index being pushed further underwater in the first two hours of trade, losing 1.2 per cent at noon. While most sectors are in negative territory, the Energy space is proving to be the heaviest weight on the index, with the oil price falling into bear market territory. We’ve also seen continued selling in the banks, following Moody’s downgrade of the big 4’s credit rating. Health Care and Utilities are bucking the trend, with some modest buying in both sectors.
The S&P/ASX 200 index is 70 points down at 5,687. On the futures market the SPI is 64 points lower.
Asian marketsJapan’s Nikkei has lost 0.09 per cent, Hong Kong’s Hang Seng has lost 0.91 per cent and the Shanghai Composite has lost 0.18 per cent.
Company newsWestern Areas Limited
(ASX:WSA) has updated its shareholders on a number of key metrics for the end of the financial year. The nickel producer says production will be towards the top end of previous guidance of 25,000 to 26,000 tonnes for FY17. The company says the positive result is due to a strong performance in the second half, efficiency improvements and cost reduction activities. Shares in Western Areas are trading 6.85 per cent lower at $1.94.
Retail Food Group Limited
(ASX:RFG) anticipates FY17 underlying NPAT growth of around 15 per cent above the previous corresponding period. The diversified retailer which is responsible for brands such as Donut King and Gloria Jeans says its international operations have continued to enjoy organic growth in FY17. It’s outlook for FY18 remains optimistic with growth to be driven largely by its International, Commercial and Allied beverages divisions. Shares in Retail Food Group are trading down 9.04 per cent at $4.63.
Best and worst performersThe best performing sector is Utilities, gaining 0.73 per cent to 9,026. Shares in AGL Energy
(ASX:AGL) have risen 2.44 per cent and trading at $26.46. Shares in Infigen Energy
(ASX:IFN) are stronger and APA Group
(ASX:APA) is lower.
The worst performing sector is Energy, falling 2.1 per cent to 8,540. Shares in Whitehaven Coal
(ASX:WHC) have fallen 4.45 per cent, trading at $2.79. Shares in Beach Energy
(ASX:BPT) and Origin Energy
(ASX:ORG) are also lower.
IPOsOliver’s Real Food Limited
(ASX:OLI) started trading today. The fast food restaurant franchise listed with an issue price of $0.30, opened at $0.20 and is currently trading at $0.205.
Gold and the dollarGold is trading at $US1,246 an ounce and the Australian dollar is buying $US0.7573.
