Midday: ASX slides to start week

Market Reports

Falling commodity prices have erased positive leads out of Wall Street to see the Australian share market start the trading week flat and slide in early trade to be 0.5 per cent lower, with losses in the Materials sector- particularly among gold miners- leading the downward charge, and weak job ads data not helping the situation. Among the positives, Billabong shares continue their fightback as discussions over the group’s future and debt re-financing options continue.
 
The S&P/ASX 200 index is 26 points down at 4,816. On the futures market the SPI is 16 points lower.
 
Economic news

The ANZ job ads series posted its fourth consecutive monthly decline in June, falling 1.8 per cent, slightly better than a 2.5 per cent drop in May. Job advertisements are sitting 19 per cent below their levels from a year ago. 
 
Company news 
 
Wesfarmers Limited (ASX:WES) supermarket chain Coles is considering extending a restructure of its supermarket supply chain to its liquor outlets and Coles Express convenience stores. According to various media reports, the supermarket giant’s proposed restructure arrangement between it, suppliers and field agents, in which it will use its market power to reduce grocery agents fees- could extend to its petrol station network and alcohol chains Liquorland, First Choice and Vintage Cellars. Shares in Wesfarmers are trading down 0.51 per cent at $39.02. 
 
Network service provider and NBN contractor Service Stream Limited (ASX:SSM) has extended a trading halt as it looks for more time to resolve its NBN Syntheo joint venture with Lend Lease Group (ASX:LLC). The company has been in a halt since June 11 and has now extended the suspension until August 15 as it completes ongoing discussions on project completion assumptions with the NBN and negotiations with its financiers, following a convenant breach in May. Shares in Service Stream last traded at $0.14. 
  
Best and worst performers

The best performing sector is Consumer Discretionary gaining 10 points to 1,623. Shares in Billabong International Limited (ASX:BBG) have risen 13.46 per cent and trading at $0.29. Shares in New Newscorp Inc (ASX:NNC) and Flight Centre Limited (ASX:FLT) are also stronger. 
 
The worst performing sector is Materials, falling 196 points to 8,474. Shares in Regis Resources Limited (ASX:RRL) have fallen 10.59 per cent, trading at $3.04. Shares in Medusa Mining Limited (ASX:MML) and Kingsgate Consolidated Limited (ASX:KCN) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,217 an ounce and the Australian dollar is buying $US0.9047.

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