Energy slump: Aus shares 0.75% lower at noon

Market Reports

by Carolyn Herbert

Following a further slump in the energy sector in overseas markets, the Australian share market has taken a nose-dive this session, wallowing deep in negative territory or 0.75 per cent lower at noon. Further declines in the oil price have seen the likes of Santos losing close to 3 per cent and Woodside shedding 2 per cent. No relief for the financials or materials sectors either with losses across the big miners BHP and Rio Tinto, as well as the big four banks.

The S&P/ASX 200 index is 39 points down at 5,279. On the futures market the SPI is 37 points lower.

Economic news

The Reserve Bank of Australia will meet for its November board meeting at 2.30pm, just half an hour prior to the race that stops the nation. There is only a 4 per cent chance the central bank will cut interest rates, with expectations it will keep rates on hold at 1.5 per cent.

Company news

Galaxy Resources Limited (ASX:GXY) says construction at its Mt Cattlin lithium project in Western Australia is nearing completion. The soon-to-be lithium producer says ore commissioning is planned to commence two weeks ahead of the revised schedule released to the market on the 6th of September 2016, with spodumene concentrate production anticipated to begin by 15th November 2016. Shares in Galaxy Resources are trading down 1.43 per cent at $0.35.

MMJ Phytotech Limited (ASX:MMJ) has gone into a trading halt pending the release of announcement by the company. The medicinal cannabis company says the announcement relates to a material change to the company’s proposed transaction with Top Strike Resources. MMJ’s securities will remain in pre-open until the earlier of the release of the announcement or the commencement of trade on Thursday. Shares in MMJ Phytotech last traded at $0.23.

Best and worst performers

The sector with the least losses is REITs, losing 0.2 per cent to 1,313. Shares in Iron Mountain have risen 1.88 per cent and trading at $43.87. Shares in National Storage and Scentre Group are also stronger.

The worst performing sector is Energy, falling 1.17 per cent to 8,126. Shares in Santos have fallen 2.8 per cent, trading at $3.47. Shares in Whitehaven Coal and Woodside are also lower.

Gold and the dollar

Gold is trading at $US1,277 an ounce.
The Australian dollar is buying $US0.7601.


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.