Miners see red after commodity prices fall: Aus shares 0.22 lower at noon

Market Reports

by Jessica Amir

The Aussie share market fell at the open as expected, on the back of Wall Street’s red close, the iron ore price drop of over a per cent, while the copper price slipped over 4 per cent.

So no surprises, the ASX is lower and has remained underwater in the first two hours of trade. Mining companies are seeing the most selling this session, leading half of the market lower. Orocobre (ASX:ORE) and South32 (ASX:S32) have copped some of the most selling among the miners so far. 

But despite that, the ASX200 has started claw back early losses thanks to gains in Staples and Discretionary companies, with the like of Costa Group (ASX:CGC) gaining over 2 per cent, while online retailer Kogan (ASX:KGN) has risen 2.8 per cent, and Myer (ASX:MYR) added 1.6 per cent.

The S&P/ASX 200 index was 0.22 per cent lower or 13 points down for the day at 5,959 points at noon.

On the futures market the SPI is 15 points lower.

Local economic news

The Australian economy grew less than expected in the September quarter on the back of drop in housing hold spending and lower export prices.The economy grew 0.6 per cent, less than the 0.8 per cent some economists hoped.

The ABS also revealed the terms of trade fell 0.4 per cent.

Meantime, 17 out of 20 industries in the nation also saw growth in the quarter with professional, scientific and technical services and health care leading.

More company news 

Qantas Airways (ASX:QAN) is completing its final buy-back as part of its total $373 million buy-back program. The highest price it bought back the shares was $6.52, while the lowest was $5.42. Shares in Qantas Airways (ASX:QAN) are trading about 2.2 per cent lower to $5.37.

And mining giant, South32 (ASX:S32) advised it’s completing a buy-back of up to US$463.7 million as part of its capital management program. At the same time it also announced it’s also holding an equity analyst and investor tour at its South Australian, Worsley Alumina refinery and Boddington Western Australian bauxite mine. Its shares are now about 3.1 per cent lower to $3.27.

Best and worst performers

The best performing sector is Staples, gaining 0.3 per cent to 10,123. Shares in Costa Group Holdings (ASX:CGC) have risen about 1.8 per cent and trading at $6.28. Shares in Blackmores (ASX:BKL) and Metcash (ASX:MTS) are also stronger. 

The worst performing sector is Materials, falling 1.2 per cent to 10,881. Shares in Western Areas (ASX:WSA) have fallen 5.3 per cent, trading at $2.88. Shares in Orocobre (ASX:ORE) and Independence Group (ASX:IGO) are also lower. 

Gold and the dollar

Gold is trading at $US1,265 an ounce and one Australian dollar is buying 75.81 US cents.
 

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.