Following losses across major overseas markets, the local bourse headed sharply lower on open and by noon was down 0.7 per cent.
Amid the red the unemployment rate was shown to have grown slightly in November as was broadly anticipated.
Energy stocks continued to take the brunt of the selling today in line with the oil price while the health care sector recovered some of yesterday’s losses.
The S&P/ASX 200 index is 30 points down at 5,229. On the futures market the SPI is 20 points lower.
Looking at economic news: The ABS has released labour force data for November which has shown a slight uptick in unemployment with the figure pushing to 6.3 per cent seasonally adjusted.
Company news
Santos Limited
(ASX:STO) will reduce its 2015 capital expenditure by 25 per cent in light of the recent rout on oil prices.
The oil and gas explorer says the company’s financial position is sound notwithstanding the weakness in the oil price. The reduction in expenditure to $2 billion comes in the wake of Standard and Poor’s this week reducing its rating of Santos’ senior debt to a BBB rating. Shares in Santos are trading down 4.85 per cent at $7.26.
Shares in Pacific Environment Limited
(ASX:PEH) jumped more than 11 per cent today after it won a $4 million contract to provide environmental services to the WestConnex project.
The environmental consulting and technology company will supply air quality monitoring stations and its EnviroSuite software to the NSW Transport project. CEO Peter White says the group is seeing significant growth opportunities for its expertise and technology. Shares in Pacific Environment are trading up 11.43 per cent at $0.08.
Best and worst performers The best performing sector is telco services, gaining 0.6 per cent to 1,985. Shares in Spark New Zealand Limited
(ASX:SPK) have risen 1.9 per cent and trading at $2.96. Shares in Telstra Corporation Limited
(ASX:TLS) are up and TPG Telecom Limited
(ASX:TPM) is flat.
The worst performing sector is energy, falling 2.26 per cent to 10,412. Shares in Horizon Oil Limited
(ASX:HZN) have fallen 10 per cent, trading at $0.14. Shares in Karoon Gas Australia Limited
(ASX:KAR) and Sundance Energy Australia Limited
(ASX:SEA) are also lower.
Gold and the dollar
Gold is trading at $US1,231 an ounce.
The Australian dollar is buying $US0.8365
