Midday: ASX retreats from 2013 highs

Market Reports

Negative offshore leads have sunk the Australian share market into a sea of red of noon. Global stocks fell overnight following the release of disappointing manufacturing figures from China, the US and France.
 
Wall Street pulled back from its record end to 2013 to start to new year on the back foot for the first time since 2008. As investors stepped out of equities the price of gold regained some luster and is supporting Australian gold miners this morning.  
 
Across the major sectors telcos are the only ones to escape negative ground with energy dragging after the oil price dropped sharply overnight. 
 
Figures
 
The S&P/ASX 200 index has retreated 36 points to 5,332 at noon. On the futures market the SPI is 39 points lower. 
 
Company news
 
Aurora Oil & Gas Limited (ASX:AUT) has predicted production will jump about 47 per cent over this year. The Perth based oil and gas producer is expecting to deliver output of between 10.6 million and 11.7 million barrels of oil equivalent in 2014. CEO Douglas Brooks says Aurora expects strong growth to continue into 2015 and beyond through the development of the company’s remaining well inventory. Shares in Aurora Oil & Gas are trading 0.34 per cent higher at $2.99. 
 
BlackRock has emerged as a new substantial shareholder in Forge Group Limited (ASX:FGE), shedding light on why the engineer’s stock has risen so sharply. The world's biggest fund manager by assets is understood to have bought up a 5.3 per cent stake in Forge Group to become its 15th biggest shareholder, according to Bloomberg figures. The recent run up in Forge’s stock price comes after its stock plunged 90 per cent after spooking the market with a profit warning at the end of 2013. Shares in Forge Group are today trading 7.89 per cent lower at $1.40. 
  
Best and worst performers
 
The only sector to escape the red is telco services, gaining 2.7 points to 1,828. Shares in Telstra Corporation Limited (ASX:TLS) are trading 0.19 per cent higher at $5.27. Shares in M2 Telecommunications Group Limited (ASX:MTU) are flat while shares in iiNet Limited (ASX:IIN) are lower at noon.. 
 
The worst performing sector is energy, falling 163 points to 13,446. Shares in Aquila Resources Limited (ASX:AQA) have dropped 2.54 per cent, trading at $2.30. Shares in Paladin Energy Limited (ASX:PDN) and Worleyparsons Limited (ASX:WOR) are also lower. 
 
Gold and the dollar
 
After jumping more than $20 overnight the price of gold has firmed to $US1,228.94 an ounce.
The Australian dollar has continued to weaken on the back of soft global manufacturing figures and is buying $US0.8906.

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