Weak leads: Aus shares 1% lower at noon

Market Reports

by Carolyn Herbert

It has been a disappointing start to the trading week for the Australian share market, following weak leads from Wall Street on Friday. The local bourse dropped at the open and has remained underwater in the first two hours of trade, tracking 1 per cent lower at noon. While most sectors are in negative territory so far this session, the Financials space is faring the worst, followed by losses in Industrials and Energy. Telcos are the best of a bad bunch today, trading just in the black.

The S&P/ASX 200 index is 58 points down at 5,665. On the futures market the SPI is 53 points lower.

Asian markets

Checking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.9 per cent, Hong Kong’s Hang Seng has added 0.45 per cent and the Shanghai Composite has gained 0.3 per cent.

Company news

Auckland International Airport Limited (ASX:AIA) says its international passenger numbers have increased 11.3 per cent for the year to June. The largest influx of international passengers came from the United States, followed by Australia and the United Kingdom. Total passenger numbers for the airport were up 10.2 per cent to 19 million to 30 June 2017. Shares in Auckland International Airport are trading flat at $6.62.

RCR Tomlinson Limited (ASX:RCR) has announced it has received a notice to proceed with the construction of Pilbara Minerals (ASX:PLS) processing plant at its Pilgangoora Lithium Tantalum mine in Western Australia. RCR says the contract is valued at around $148 million. Work will commence immediately on the project and will contribute to FY18 earnings. Shares in RCR Tomlinson are trading up 0.27 per cent at $3.66.

Best and worst performers

The best performing sector is Telcos, gaining 0.4 per cent to 1,456. Shares in TPG Telecom (ASX:TPM) have risen 2.89 per cent and trading at $5.88. Shares in Vocus Group (ASX:VOC) and Telstra (ASX:TLS) are also stronger.

The worst performing sector is Financials, falling 1.3 per cent to 6,521. Shares in Perpetual (ASX:PPT) have fallen 2.88 per cent, trading at $50.56. Shares in QBE Insurance (ASX:QBE) and Challenger Limited (ASX:CGF) are also lower.

Gold and the dollar

Gold is trading at $US1,254 an ounce and the Australian dollar is buying $US0.7915.


 

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