The Australian share market is widening this week’s falls, dropping 0.8 per cent at noon in spite of a positive lead from Wall Street. US stocks rebounded to end higher following a volatile session overnight, buoyed by ongoing hopes for the continuation of the Federal Reserve’s stimulus. However, local stocks have headed south ahead of this evening’s monthly US jobs report as traders trim their expectations for employment growth in the world’s largest economy.
Figures
The S&P/ASX 200 index has dropped 38 points and is sitting at 4,744. On the futures market the SPI is 36 points down.
Economic news
Australia’s construction sector continues to show signs of weakness – having remained in contraction mode for three years. The Australian Industry Group and Housing Industry Association’s Performance of Construction Index (PCI) added just 0.1 points to 35.3 in April, remaining below 50 which indicates construction activity is shrinking. AIG says, "Successive cuts in interest rates by the Reserve Bank of Australia have been welcome but, so far, they appear only to have steadied the decline in building activity.”
Company news As the World Economic Forum on East Asia wraps up in Myanmar speculation surrounds Australian heavy-weight oil and gas producer Woodside Petroleum Limited
(ASX:WPL) and if it will expand its interests in the emerging economy. Myanmar’s energy ministry has estimated $75 billion of fuel is up for grabs ahead of the deadline for statements of interest due at the end of next week. Woodside officially stepped into Myanmar at the end of 2012 through inking two oil and gas exploration deals as part of its strategy to expand beyond Australian shores. Woodside’s CEO Peter Coleman has made no secret about his enthusiasm for Myanmar and said last month the company is hoping to be active in this current bid round. Shares in Woodside Petroleum have lost 0.96 per cent and are trading at $34.94.
Oil and gas major Santos Limited
(ASX:STO) has struck another gas discovery in the Browse Basin offshore Western Australia. The Adelaide-based company says it is encouraged by the presence of gas with condensate and the absence of a water leg or gas water contact. Santos holds four exploration permits in the region and the latest discovery backs up the region’s potential as a possible production source. Shares in Santos have put on 0.16 per cent and are trading at $12.53.
Best and worst performers The best performing sector is real estate investment trusts adding 3 points to 1,028. Shares in Mirvac Group
(ASX:MGR) have risen 1.39 per cent and trading at $1.64. Shares in Goodman Group
(ASX:GMG) and Australand Property Group
(ASX:ALZ) are also stronger.
The worst performing sector is materials, falling 207 points to 8,958. Shares in Newcrest Mining Limited
(ASX:NCM) have sunk after revealing up to $6 billion of write-downs are trading 8.68 per cent down at $12.20. Shares in OZ Minerals Limited
(ASX:OZL) and Iluka Resources Limited
(ASX:ILU) are also lower.
Gold and the dollar
Gold is trading at $US1,416 an ounce.
The Australian dollar is buying 95.47.
