The Australian share market has plunged more than 1 per cent in morning trade, widening yesterday’s falls below the key 5,300 barrier. Local stocks sank at open along with major regional markets following a steep sell-off on Wall Street.
US stocks dropped by the biggest amount since November as the major indexes each lost more than 1 per cent. Investors continue to consider how America’s equity valuations and economic outlook will impact the central bank’s monetary policy.
Across the local sectors all but gold are in the red with investors stepping back into safe-haven precious metals.
Figures
The S&P/ASX 200 index has plunged 54 points to 5,238. On the futures market the SPI is pointed 59 points down.
Market movers
Shares in Fortescue Metals Group Limited
(ASX:FMG) are trading 0.58 per cent lower and Mineral Resources Limited
(ASX:MIN) are sharply 8.36 per cent down after releasing the details of a deal last night. Fortescue has taken control of two Christmas Creek ore processing plants from Mineral Resources as part of an early buy-out of a ten year lease deal.
Defying the downward trend - Shares in Coalspur Mines Limited
(ASX:CPL) have jumped 6.78 per cent after the coal explorer moved closer to advancing its Vista project in North America. Regulators helped to clear the path to development yesterday after the sole remaining First Nation party withdrew as an intervener last week.
Shares in Altium Limited
(ASX:ALU) have climbed 9.05 per cent after the software developer said it had achieved double digit sales growth in the first half and predicted it will report underlying a net profit growth when its final interim results are released.
Shares in Starpharma Holdings Limited
(ASX:SPL) have risen 1.8 per cent after the biotechnology company advised it is eligible to receive an extra $2.3 million cash in Research and Development (R&D) tax incentive for overseas activities.
Best and worst performers
All major sectors are trading in negative territory: The sector with the smallest losses is real estate investment trusts, losing 7 points to 999. Shares in GPT Group
(ASX:GPT) have risen 0.14 per cent and trading at $3.60. Shares in Charter Hall Group
(ASX:CHC) and Investa Office Fund
(ASX:IOF) are trading flat at noon.
The worst performing sector is energy, falling 141 points to 13,183. Shares in
Karoon Gas Australia Limited (ASX:KAR) have fallen 3 per cent, trading at $3.88. Shares in Buru Energy Limited (ASX:BRU) and Horizon Oil Limited (ASX:HZN) are also lower.
Gold and the dollar
Gold rose $4.20 overnight and has since firmed to $US1,252 an ounce.
The Australian dollar is buying $US0.9030.
