After a weaker start from Wall Street with the major indices closing in the red, the Australian share market dropped this morning.
The drop in the iron ore price, which was at a 4.6 per cent loss this morning, is putting a cap on gains. Syrah Resources (ASX:SYR) has made a significant fall. BHP (ASX:BHP), Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) are also also tracking lower. The Energy sector has also fallen, with Beach Energy (ASX:BPT) dropping more than 6 per cent before midday.
Dulux Group (ASX:DLX) has lifted after reporting strong FY2017 results today. The tech sector is progressing well, pulled up by Aconex (ASX:ACX) and Next DC (ASX:NXT), and Health Care is also in the green. The other sectors including financials, consumer staples and telcos are all performing lower.
The S&P/ASX 200 index is 24 points down at 5,945.
On the futures market the SPI is 17 points lower.
Local economic news
Australian consumer confidence has dipped this month after last month’s rise. Westpac reported a 1.7 per cent drop to 99.7. October saw a 3.6% rise in comparison.
Australia’s wage price index is sitting steady at a 0.5% increase for the September quarter and a marginal annual increase of 2 per cent from 1.9 per cent.
Energy company AusNet (ASX:AST) has announced a 4.7 per cent growth in revenue to $1.1 billion in the first half of 2018. Profits after tax for the company are up 14 per cent to $2.4 million. The company is paying an unfranked dividend of 4.63 cents. Shares in AusNet (ASX:AST) are trading 0.54 per cent higher to $1.86.
Financial services advisory group Moelis (ASX:MOE) has recorded underlying EBITDA of $38 million, a 15 per cent increase from the previous guidance of $33 million. The company’s Redscape Hotel Group has entered into contracts to acquire two hotels, with a third agreement underway. All three contracts are priced at a combined $100 million. Shares in Moelis (ASX:MOE) are trading 3.57 per cent higher to $6.10.
IXUP (ASX:IXU) started trading today. The software company floated with an issue price of $0.20, opened at $0.37 and is currently trading at $0.365.
Telex (ASX:TLX) started trading today. The pharmaceuticals company floated with an issue price of $0.65, opened at $0.81 and is currently trading at $0.84.
Best and worst performers
The best performing sector is Health Care, gaining 0.16 per cent to 24,135. Shares in Sigma Healthcare have risen 1.67 per cent and trading at $0.76. Shares in Australian Pharmaceutical Industries and Resmed are also stronger.
The worst performing sector is Energy, falling 1.98 per cent to 9,829. Shares in Beach Energy have fallen 4.3 per cent, trading at $1.06. Shares in Worley Parsons and Santos are higher.
Gold is trading at $US1,282 an ounce and one Australian dollar is buying 75.84 US cents.