The Australian share market dropped at open and is 0.5 per cent down at noon, following the release of soft US services data and ahead of the closely watched jobs report tonight. On the domestic front, the Reserve Bank of Australia [RBA] has cut its growth and inflation forecasts, dampening sentiment and pushing energy and mining stocks to the worst performing sectors.
The S&P/ASX 200 index has lost 23 and is 4,406. On the futures market the SPI is 27 points higher.
Market Movers
Shares in Aquila Resources Limited (ASX:AQA) have lost ground after announcing a maiden resource statement for its Injune thermal coal project in Queensland, one day after announcing a maiden resource statement for its Wilpeena PCI coal project, also in Queensland. Earlier this week Aquila confirmed the Foreign Investment Review Board has given the green light for it to sell its 50 per cent stake in the Isaac Plains Mine in central Queensland for $430 million to a Japanese company. Shares in Aquila Resources have shed 2.74 per cent at noon and are trading at $4.26.
Shares in Copper Strike Limited (ASX:CSE) have fallen after the copper explorer informed the market of a proposed acquisition in Tanzania that is expected to transform the company into a mineral sands explorer. Copper Strike says it has inked a deal with Syrah Resources Limited (ASX:SYR) to buy its mineral sands exploration portfolio in exchange for shares in its company. Shares in Copper Strike have shed 17.24 per cent at noon and are trading at $0.12.
Best and worst performers
The best performing sector is Consumer Staples gaining 45 points to 7,862. Shares in Coca-Cola Amatil Limited (ASX:CCL) have risen 0.8 per cent and trading at $12.61. Shares in Wesfarmers Limited (ASX:WES) and Woolworths Limited (ASX:WOW) are also stronger.
The worst performing sector is Energy, falling 286 points to 13,979. Shares in Karoon Gas Australia Limited (ASX:KAR) have fallen 4.12 per cent, trading at $6.05. Shares in Santos Limited (ASX:STO) and Beach Energy Limited (ASX:BPT) are also lower.
Gold and the dollar
Gold is trading at $US1,637 an ounce.
The Australian dollar is buying $US1.0278.
