Down again: Aus shares 0.87% lower at noon

Market Reports

by David Chau

The Australian stock market fell as soon as trading began this morning. The strong gains which the local bourse made yesterday have almost entirely been eroded, and it’s now tracking 0.87% lower at noon.

The Australian dollar has also fallen back to the US76c mark.

The big banks are pulling the market down today, as investors continue to worry about the potential fallout from Deutsche Bank, whose shares have hit a record low. It’s also been reported that a number of hedge funds, which clear derivative trades with the German lender, are cutting their exposure, and moving their money elsewhere.

The S&P/ASX 200 index is 48 points down at 5,424. On the futures market the SPI is 55 points lower.

Company news

Decmil Group Ltd (ASX:DCG) has secured three new contracts. The first one is with Sino Iron Pty Ltd for $14.7 million – to build an airstrip at Cape Preston, as part of the Sino Iron magnetite project. The second and third contracts are with Gullen Solar Pty Ltd worth $19.2 million – to engineer, procure and build a solar farm. Shares in Decmil are trading down 0.48% at $1.03.

Villa World Ltd (ASX:VLW) has confirmed that it reached an in-principle deal to settle the Silverstone litigation with all the parties. They entered Deed of Settlement, which has been approved by the Federal Court. Shares in Villa World are trading up 0.88% at $2.30.

Best and worst performers

The best performing sector is Telcos, gaining 0.2 per cent to 1,857. Shares in Spark New Zealand have risen 2.23 per cent and are trading at $3.45. Shares in Telstra are stronger, but TPG Telecom shares have gone down.

The worst performing sector is Discretionaries, falling 1.3 per cent to 2,194. Shares in Southern Cross Media have fallen 13.95 per cent, trading at $1.45. Shares in APN Outdoor Group and Mantra Group are also lower.

Gold and the dollar

Gold is trading at $US1,325 an ounce.
The Australian dollar is buying $US0.7633.