As Wall Street fell overnight on continued US Fed tapering fears, the Australian share market opened flat and has fallen sharply in early trade. Health stocks and the big banks are weighing amid some heavy early losses. Among the stocks, Qantas and QBE insurance have entered trading halts amid earnings panic, with Qantas’ credit rating being cut to junk status by S&P. Meanwhile the hotly anticipated listing of Channel Nine has just become official. The broadcaster listed with a price of $2.05 and has opened at $2.02.FNN will bring you the full breakdown of nine’s first trading day in this evenings market wrap.
The S&P/ASX 200 index is 27 points down at 5,171. On the futures market the SPI is 41 points lower.
Economic news
The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (PCI) rose 0.8 points to 55.2 in November, on the back of an improvement in new orders and deliveries. It was the highest reading since November 2010 and the second straight month of expansion. All the major sub-sectors grew for the month, although house building and apartments lost some ground.
Company news
QBE Insurance Group Limited
(ASX:QBE) has entered a trading halt this morning ahead of an expected profit downgrade, expected next Monday. The insurer has been finalising a review of its problematic North American operations and their expected impact on its full year results. Shares in QBE last traded at $15.45.
Flight Centre Travel Group Limited
(ASX:FLT) has expressed disappointment at the Federal Court’s upholding of the ACCC’s competition law test case against it and will consider an appeal. The competition watchdog launched a case against the travel retailer in October last year, alleging it has attempted to fix airfare prices, a claim refuted by Managing Director Graham Turner, who says Flight Centre in fact regularly suggests to airlines that they lower prices to stimulate demand. Shares in Flight Centre are trading down 6.05 per cent at $44.55.
Best and worst performers All major sectors are trading lower. The sector with the fewest losses is Real Estate Investment Trusts falling 6 points to 986. Shares in DEXUS Property Group
(ASX:DXS) have risen 0.74 per cent and trading at $1.02. Shares in Abacus Property Group
(ASX:ABP) are slightly higher while Westfield Retail Trust
(ASX:WRT), which is trading flat at noon.
The worst performing sector is Healthcare, falling 90 points to 13,866. Shares in Sirtex Medical Limited
(ASX:SRX) have fallen 1.68 per cent, trading at $11.70. Shares in Ramsay Health Care Limited
(ASX:RHC) and ResMed Inc. (CHESS)
(ASX:RMD) are also lower.
Gold and the dollar
Gold is trading at $US1,228.54 an ounce and the Australian dollar is remaining stable on the back of the construction sector expanding for the second straight month. It is currently buying $US0.9050.
