Stung by steep offshore losses the Australian share market and dollar have extended this week’s falls but appear to be fighting back from the session’s low. Sentiment has been knocked by fears the US Federal Reserve will stop stimulating the American economy and concerns over China’s growth. Local stocks have now reclaimed half the morning’s losses, after plunging more than 1 per cent at open, but remain 0.6 per cent in the red. Across the sectors only health care and industrials have escaped negative territory. Gold stocks are being battered after the price of the precious metal continued to retreat overnight.
Figures
The S&P/ASX 200 index has dropped 31 points to 4,727. On the futures market the SPI is 25 points lower.
Economic news
Australia’s liquefied natural gas (LNG) projects could be struck with more delays due to rising costs and intense competition, according to The International Energy Agency. The energy watchdog’s medium-term gas market report for this year also cut expectations for global gas demand to a rate of 2.4 per cent annual growth to 2018, down from a previous estimate of 2.7 per cent and down from the expected 2.6 per cent annual rate for coal demand.
Company news Rio Tinto Limited’s
(ASX:RIO) Mongolian operations have hit another hurdle after the government delayed launching the global miner’s $6.2 billion copper and gold mine. Rio Tinto had expected to start shipping from Oyu Tolgoi today but plans have been postponed at the government’s request. A Rio Tinto spokesperson says the company is keen to start shipping as soon as possible and will do so as soon as the government indicates its support. Shares in Rio Tinto are trading 0.59 per cent down at $52.29.
Charter Hall Retail REIT
(ASX:CQR) expects to gain about $60 million from the sale of its Polish assets which it plans to reinvest into Australian acquisitions. The property investor has inked a conditional deal to divest five assets for about $250 million, down 4.6 per cent from its book value at the end of 2012. The company expects to offload the balance of its offshore portfolio over the coming financial year. Shares in Charter Hall Retail REIT are trading 0.5 per cent down at $3.96.
Best and worst performers The best performing sector is industrials gaining 11 points to 3,530. Shares in CSR Limited
(ASX:CSR) have risen 4.13 per cent and trading at $2.15. Shares in Downer EDI Limited
(ASX:DOW) and Leighton Holdings Limited
(ASX:LEI) are also stronger.
The worst performing sector is real estate investment trusts, falling 18 points to 1,005. Shares in DEXUS Property Group
(ASX:DXS) have fallen 3.72 per cent, trading at $1.03. Shares in Goodman Group
(ASX:GMG) and GPT Group
(ASX:GPT) are also lower.
Gold and the dollar
The price of gold has plunged to near three year-lows and is trading at $US1,269 an ounce.
The Australian dollar is buying 92.25 US cents.
