Following heavy selling in Wall Street where investors are getting increasingly nervous about the geopolitical risk, the Australian share market opened lower and is 0.28 per cent down at noon.
The S&P/ASX 200 index is 18 points down at 5,501. On the futures market the SPI is 30 points lower.
Company news
Shares in Ausdrill Limited
(ASX:ASL) have resumed trading today after being placed in a halt last week. The mining services group has announced goodwill write downs of between $60 million and $90 million. This comes following a ‘review of the company’s longer term forecast on the back of the recent fall in the iron ore price and continued challenging market conditions’. Ausdrill added that the review showed the recovery in the mining sector would be slower than the company had originally anticipated. The announcement was made ahead of the release of Ausdrill’s full year results which are due at the end of the month. Ausdrill also said that a corporate tax exemption under which it had been operating in Mali has been withdrawn and it now owes approximately $2.7 million in corporate income tax.
Shares in Ausdrill are trading 10.33 per cent down at $0.96.
NewSat Limited (ASX:NWT) today announced that its Jabiru-1 project build is neither on hold or suspended. The satellite communications company had been asked by the ASX to explain its plunging share price after reports of financial difficulties. Today, NewSat said legal discussions are ongoing after the discovery of a technical or documentary breach connected to $10 million in loan funds from Ever Tycoon. NewSat says both parties are seeking a no-fault resolution and the uncertainty has in no way delayed the Jabiru-1 satellite build. The company confirmed that its Jabiru-2 satellite was complete and scheduled for launch in September. The satellite is expected to be in operational service after four weeks of in-orbit testing. Shares in NewSat are trading 13.33 per cent stronger at $0.17.
Best and worst performers
The best performing sector is telco services, gaining 0.5 per cent to 1,891. Shares in M2 Group have risen 2.8 per cent and are trading at $6.25. Shares in Singapore Telecom and iiNet are also stronger.
The worst performing sector is real estate investment trusts, falling 0.7 per cent to 1,096. Shares in CFS Retail have fallen 1.42 per cent, trading at $2.08. Shares in Charter Hall and Stockland are also lower.
Gold and the dollar
Gold is trading at $US1,289 an ounce.
The Australian dollar is buying 92.98 US cents.
