Midday: Aus shares track 0.8% lower at noon

Market Reports

by Carolyn Herbert

Despite a positive lead from Wall Street on Friday on the back of a rally in tech stocks, the Australian share market has gone in the other direction in the first two hours of trade. It was a positive open for the local bourse, but it made an about turn and plunged into the red about half an hour into the session. It’s now tracking 0.8 per cent lower at noon. There’s currently a sea of red across the materials and financials sectors, with losses in the big miners as well as the big four banks weighing down the index. The energy space has also plunged into negative territory after a fall in the oil price. 
 
The S&P/ASX 200 index is 43 points lower at 5,308. On the futures market the SPI is down 43 points. 
 
Company news

Capilano Honey Limited (ASX:CZZ) has announced a fully underwritten 1 for 10 pro rata non renounceable entitlement offer to raise gross proceeds of $16.8 million. The company says funds raised from the offer will be used to fund the acquisition of beekeeping enterprises, as well as strengthen the balance sheet and reduce debt. The offer price is $19.50 per new share, a 7.7 per cent discount to the closing price on 18 May 2016. Shares in Capilano are trading 0.57 per cent lower at $21.00. 
 
Biotron Limited (ASX:BIT) has advised that two compounds from its library have shown positive activity against the Zika virus. The company says these early results are encouraging and is a starting point for designing potent drugs against the virus. Shares in Biotron are trading up 26.56 per cent at $0.08. 
 
Best and worst performers

The sector with the least losses is staples, losing 0.25 per cent to 8,685. Shares in Bellamy’s have risen 3.19 per cent and trading at $10.69. Shares in Blackmores and Asaleo Care are also stronger. 
 
The worst performing sector is Energy, falling 2.26 per cent to 8,006. Shares in Oil Search have fallen 4.39 per cent, trading at $6.53. Shares in Origin Energy and Beach Energy are also lower. 
 
Gold and the dollar

Gold is trading at $US1,256 an ounce.
The Australian dollar is buying $US0.7232. 
 

Carolyn Herbert

Finance News Network
Carolyn joined FNN in August 2015 as the Head of News and also presented the Market at Midday and the Market Wrap. With more than five years of broadcast journalism experience, Carolyn has worked as a finance anchor on the Sky News Business channel and as an anchor and reporter for ABC News. She is also a qualified corporate lawyer specialising in IPOs, takeovers and mergers and acquisitions.