Banks back-pedal: Aus shares tumble 0.93% at noon

Market Reports

by Carolyn Herbert

Following weak leads from Wall Street the Australian share market plunged at the open and continued to lose momentum throughout the session and is now tracking 0.93% lower at noon. The financials space, in particular the big four banks are proving to be the biggest drag on the market with Westpac shedding more than 3 per cent. Also a bad day for the energy space after the price of Brent Crude dropped around 2 per cent overnight.

The S&P/ASX 200 index is 52 points lower at 5,492. On the futures market the SPI is down 44 points.

Company news

JB Hi-Fi Limited (ASX:JBH) says the ACCC will not oppose its proposed acquisition of The Good Guys. Based on extensive market research the ACCC concluded that JB Hi-Fi and The Good Guys focus on different product categories and customers. JB Hi-Fi says it will continue to participate in the sales process, but has made no decision nor has it entered into any agreement to acquire The Good Guys. Shares in JB Hi-Fi are trading up 1.51 per cent at $26.85.

NEXTDC Limited (ASX:NXT) has announced it has entered into a $100 million senior secured debt facility with National Australia Bank. The facility will replace the company’s existing undrawn $50 million debt facility. The company says the funds will provide the company with additional financial flexibility and working capital. Shares in NEXTDC are trading up 1.33 per cent at $3.80.

Best and worst performers

The best performing sector is Discretionaries, gaining 0.7 per cent to 2,202. Shares in Automotive Holdings have risen 9.16 per cent and trading at $4.71. Shares in REA Group and InvoCare are also stronger.

The worst performing sector is Financials excluding REITS, falling 1.7 per cent to 6,678. Shares in AMP have fallen 3.83 per cent, trading at $5.65. Shares in Westpac and Bank of QLD are also lower.

Gold and the dollar

Gold is trading at $US1,343 an ounce.
The Australian dollar is buying $US0.7705.


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.