Following a positive open the Australian share market is hovering flat at noon amid nervous sentiment. While global markets rose overnight and US stocks hit fresh records the latest figures on eurozone growth revealed the region’s six straight quarter of contraction.
Pressure on precious metals prices has weighed on the local mining sector with the majors trading in the red. The price of gold has now retreated 15 per cent for the year after retreating below $US1,400 per ounce overnight.
The S&P/ASX 200 index has dipped 10 points and sitting at 5,182. On the futures market the SPI is 13 points lower.
Company news Shares in Fortescue Metals Group Limited
(ASX:FMG) have dropped on news iron ore miner Brockman Mining Limited
(ASX:BCK) has applied to access its below-rail infrastructure. Brockman Mining has submitted a proposal to the West Australian government to explore solutions for the commercialisation of its Marillana Project in the Pilbara region. Fortescue is currently exploring the divestment of a stake in its wholly owned rail and port network for a reported price tag of more than $US3 billion. Fortescue Metals Group are trading down 3.06 per cent at $3.48.
Shares in Australian Infrastructure Fund Limited
(ASX:AIX) have plunged more than 90 per cent with the stock trading ex-capital return following asset sales. The infrastructure investor announced earlier this week it will return $3.02 per share to investors today. The company’s stock is now hovering near $0.17, giving it a market value of just over $100 million, positioning itself to drop out of the top 200 stock index. Australian Infrastructure Fund is trading down 94.59 per cent at $0.17.
Best and worst performers The best performing sector is consumer staples gaining 146 points to 10,410. Shares in Wesfarmers Limited
(ASX:WES) have risen 2.85 per cent and trading at $44.02. Shares in Treasury Wine Estates Limited
(ASX:TWE) and Woolworths Limited
(ASX:WOW) are also stronger.
The worst performing sector is health care, falling 175 points to 13,230. Shares in Mesoblast Limited
(ASX:MSB) have fallen 2.87 per cent, trading at $5.42. Shares in CSL Limited
(ASX:CSL) and Sonic Healthcare Limited
(ASX:SHL) are also lower.
Gold and the dollar
Gold is trading at $US1,392 an ounce.
The Australian dollar is buying 99.07 US cents.
