The Australian share market is down over 1 per cent at midday on the back of tensions in Ukraine and fears that Russia will intervene.
The S&P/ASX 200 index is 60 points down at 5,344. On the futures market the SPI is 57 points lower.
Economic news The Australian Industry Group's Australian Performance of Manufacturing Index (PMI) has improved slightly to 48.6 points in February, from 46.7 the month before. A figure below 50 indicates a slowdown.
The strong Australian dollar, high energy costs and low productivity growth continue to weigh on the manufacturing sector. The figure comes after the Australian Bureau of Statistics speculated last week that manufacturing investment may drop by 25 per cent in 2014.
Home values across capital cities recorded no change in January according to the RP Data Home Value Index. Sydney, Hobart and Darwin were the only capital cities to record a rise. The index has posted eight successive month-end increases of 10 per cent or greater.
Company news AMP Limited
(ASX:AMP) has announced Peter Mason will step down as chairman after eight years in the role at the group’s upcoming annual meeting. Mr Mason will be replaced by Simon McKeon, as part of a planned succession.
Simon McKeon joined AMP from Macquarie Group in April of 2013. He has since worked on the company’s audit committee and as Director of AMP Capital Holdings. His 30 year career has seen him work in corporate mergers and acquisitions, fund raising and strategic advice.
Mr McKeon said the move was timed to follow the smooth transition to the new CEO Craig Meller and the completion of the recent merger with AXA. Shares in AMP are trading down 3.52 per cent at $4.66.
In some brighter news for manufacturing, Brisbane heavy equipment contractor Austin Engineering Limited
(ASX:ANG) has announced they have inked a deal to supply three large cranes for BHP’s Spence Mine in Northern Chile. The deal is worth US$9 million while maintenance requirements could see the contract increase to over US$ 10 million.
The news comes after Austin last month reported a 95 per cent fall in first half net profit. MD Michael Buckland says the deal is a strategic win for the equipment division of the company and will provide a pipeline for the company’s associated products such as trays, buckets and maintenance services. He says the company is in further negotiation for similar contracts. Shares in Austin Engineering are trading up 2.17 per cent at $2.35.
The best and worst performersThe best performing sector is Energy gaining 87 points to 13,779. Shares in Oil Search Limited
(ASX:OSH) have risen 2.43 per cent and trading at $8.86. Shares in Santos Limited
(ASX:STO) and Origin Energy Limited
(ASX:ORG) are also stronger.
The worst performing sector is Materials, falling 202 points to 10,268. Shares in Alumina Limited
(ASX:AWC) have fallen 4.3 per cent, trading at $1.23. Shares in Sirius Resources
(ASX:SIR) and BHP Billiton Limited
(ASX:BHP) are also lower.
Gold and the dollarGold is trading at $US1,341 an ounce.
The Australian dollar is buying $US0.8901.
