Materials and Energy cause ASX to tumble 0.11% at noon

Nine out of 11 sectors are trading higher today. However, following losses from the Materials and Energy sector in the US markets on Friday and a cut to the production of bellwether miner South32 (ASX:S32) in the March quarter, the S&P/ASX 200 is 0.11 per cent lower at 7,322.60 at noon.

The SPI futures are pointing to a fall of 8 points.

Best and worst performers

The best-performing sector is Information Technology, up 1.21 per cent. The worst-performing sector is Materials, down 1.7 per cent.

The best-performing large cap is Pilbara Minerals (ASX:PLS), trading 5.85 per cent higher at $4.255. It is followed by shares in Nanosonics (ASX:NAN) and PolyNovo (ASX:PNV).

The worst-performing large cap is InvoCare (ASX:IVC), trading 9.5 per cent lower at $10.96. It is followed by shares in South32 (ASX:S32) and Lake Resources NL (ASX:LKE).

Asian markets

Asia-Pacific markets were lower on Friday as Japan’s core inflation for March came in at 3.1 per cent, unchanged from February, data from the Statistics Bureau showed.

This is the second straight month that core inflation has come in lower than January’s core inflation figure of 4.2 per cent, the highest since 1981.

Mainland Chinese markets led losses in the region as the Shenzhen Component shed 2.28 per cent, closing at 11,450.43 and the Shanghai Composite dropped 1.95 per cent to finish at 3,301,26.

Hong Kong’s Hang Seng index markets slid 2.01 per cent in its final hour of trade, while the Hang Seng Tech index tumbled 3.58 per cent.

The Nikkei 225 fell 0.33 per cent to end the day at 28,564.37, and the Topix dropped 0.23 per cent to finish at 2,035.06.

South Korea’s Kospi fell 0.73 per cent to close at 2,544.4, while the Kosdaq saw a larger loss at 1.91 per cent and closed at 868.82.

Company news

Eildon Capital Group (ASX:EDC) has announced that they have received an odd-market takeover offer from Samuel Terry Asset Management as trustee for Samuel Terry Absolute Return Active Fund for $0.93 cash per stapled security. The board is currently considering the offer. Shares are trading 17.7 per cent higher at 93 cents.

Meteoric Resources (ASX:MEI) has entered into a binding agreement to acquire significant and strategic Ionic Clay Rare Earth Element licences in Brazil. Executive Chairman, Andrew Tunks said, “The large contiguous area created by the acquisition will provide the perfect platform to grow a Tier-1 worldclass rare-earth project within a single area.” Shares are trading 1.72 per cent higher at 14.8 cents.

Continuing on the mining thematic, Los Cerros (ASX:LCL) has announced that their first hole drilled at their Kusi prospect in Papua New Guinea has hit high grade gold. Managing Director Jason Stirbinskis commented, “the first drill hole is considered a strong success and has given us added comfort that the Kusi Upper Limestone skarn mineralisation is a worthy target capable of delivering large tonnage and grade.” Shares are trading 6.67 per cent at 3.2 cents.

Commodities and the dollar

Gold is trading at US$1991.50 an ounce.
Iron ore futures are pointing to a 2.8 per cent fall.
One Australian dollar is buying 66.87 US cents.