Erasing yesterday’s gains: Selling drags ASX 0.3% lower at noon

Market Reports

by Jessica Amir

The Australian share market is tracking 0.3 per cent lower at noon, erasing yesterday’s gains with traders collecting their profits and selling down across all sectors, except mining.

The local bourse dropped at the open, despite strong record leads from Wall Street with the Dow tracking to its first 6 week of straight gains since 1954.

Materials the only space pushing up after the iron ore price strengthened, rising 3.2 per cent. Orocobre (ASX:ORE) gained about 1.9 per cent while Alumina (ASX:AWC) rose about 1.7 per cent and gold miner Newcrest Mining (ASX:NCM) added 1.4 per cent, beating the heavyweights like Rio (ASX:RIO) and BHP (ASX:BHP) in terms of gains.

Retailer Myer (ASX:MYR) is front running and gained about 4 per cent higher at one stage.

Holding us back and seeing the most selling is property funds like Mirvac (ASX:MGR), while indiscriminate profit taking is taking its toll across the board.

Oil price still at holding onto one-year highs, while Bitcoin is continuing to trade under US$15,000, 25 per cent off its peak level that it hit last week.

The S&P/ASX 200 index is 21 points down or 0.30 per cent lower at 6,070.

On the futures market the SPI is 21 points lower.

Company news

UBS Group took the opportunity to become a substantial holder of Tabcorp (ASX:TAH), taking its holding to 8.83 per cent. It comes just two weeks after Tabcorp merged and bought out Tatts (ASX:TTS) becoming an $11.3 billion gaming empire. Its shares are trading 0.3 per cent lower at $5.61.

Commonwealth Bank of Australia (ASX:CBA) sold out of FlexiGroup (ASX:FXL), which it was a substantial holder of and quickly bought the shares back, maintaining its 5 per cent holding flexible finance business that serves retail firms like Harvey Norman (ASX:HVN) and Apple resellers. Shares in Commonwealth Bank of Australia (ASX:CBA) are flat at $80.46.

Best and worst performers

The best performing sector was Materials adding 0.06 per cent to 11,581.

The best performing stock in the S&P/ASX 200 was Myer Holdings Limited (ASX:MYR), rising 3.57 per cent to $0.65. Shares in IPH Limited (ASX:IPH) and Orocobre Limited (ASX:ORE) also higher.

The worst performing sector was Telcos, shedding 0.7 per cent to 1,317 points.

The worst performing stock in the S&P/ASX 200 was Saracen Mineral Holdings Limited (ASX:SAR), dropping 3.7 per cent to $1.70. Shares in Bega Cheese Limited (ASX:BGA) and Genworth Mortgage Insurance Australia Limited (ASX:GMA) also are lower.

Commodities and the dollar

Gold is trading at $US1,295 an ounce.
One Australian dollar is buying 78.02 US cents.


Bitcoin is trading at $14,625
Ethereum is trading at $740
And Litecoin is trading at $248


Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.