The Australian share market followed Wall Street lower at open and is languishing 1.8 per cent lower at midday, erasing a significant portion of yesterday’s blockbuster gains as well as $20 billion in market value. All the major sectors are lower at this stage, with materials leading the way down. Gold stocks are posting some heavy losses and reversing their good form from yesterday.
The S&P/ASX 200 index is 89 points down at 4,745. On the futures market the SPI is 83 points lower.
Economic news
New home sales rose for the third straight month in May, reaching their highest level in 18 months in a promising sign that low mortgage rates are breathing life into the property market. The Housing Industry Association says sales of new homes went up by 1.6 per cent in May.
Activity in the services sector is in contraction for the 17th consecutive month despite recording a slight rise in June. The Australian Industry Group- Commonwealth Bank Performance of Services Index rose 0.9 points to 41.5,with the sector dragged down by weak demand from households and businesses.
The Australian Bureau of Statistics says Australian retail sales saw a slight rise in May however fell short of analysts expectations. Retail spending edged 0.1 per cent higher to $21.82 billion, below estimates of a 0.3 per cent lift.
Company news
Sirtex Medical Limited
(ASX:SRX) increased dose sales of its SIR-Spheres targeted radiation therapy by 13.1 per cent in the June quarter and 19 per cent for fiscal 2013. CEO Gilman Wong says Sirtex has now achieved 36 consecutive quarters of dose sale growth, which it expects to continue. Shares in Sirtex Medical are trading down 0.5 per cent at $11.99.
Senex Energy Limited
(ASX:SXY) says it will drill more than 30 wells over the next 12 months in an effort to further increase oil production across its portfolio in South Australia’s Cooper Basin. The oil and gas explorer has identified more than 50 oil prospects following a six month review of its oil assets. Shares in Senex are trading down 1.69 per cent at $0.58.
Best and worst performers All the major sectors are down. The fewest losses are in Utilities, shedding 13 points to 5,287. Shares in DUET Group
(ASX:DUE) have risen 1.46 per cent and trading at $2.08. Shares in Spark Infrastructure Group
(ASX:SKI) are higher while APA Group
(ASX:APA) is trading slightly lower at midday.
The worst performing sector is Materials, falling 206 points to 8,489. Shares in St. Barbara Limited
(ASX:SBM) have fallen 6.07 per cent, trading at $0.50. Shares in PanAust Limited
(ASX:PNA) and Arrium Limited
(ASX:ARI) are also lower.
Gold and the dollar
Gold is trading at $US1,246 an ounce and the Australian dollar is buying $US0.916.
