Friday falls: Aus shares 0.63% lower at noon

Market Reports

by Carolyn Herbert

As US stock markets continue to be sold off ahead of the latest polls showing Donald Trump is closing in on Hilary Clinton’s lead, Australian investors have also decided to continue reducing their positions ahead of next week’s US Presidential election, resulting in the local bourse shedding 0.63 per cent at noon. The energy space is proving to be the biggest drag on the market so far this session along with financials with losses in all of the big four banks.

The S&P/ASX 200 index is 33 points down at 5,193. On the futures market the SPI is 19 points lower.

Economic news

The Reserve Bank of Australia has released its Statement of Monetary policy following its November board meeting on Tuesday where the cash rate was kept on hold at 1.5 per cent. In its statement the RBA noted that inflation was to rise gradually to 2 per cent by 2019, but jobs growth will edge a little lower over the next two years. The outlook for commodity prices is also more positive than previously thought.

Company news

Mayne Pharma Group Limited (ASX:MYX) continues to assure its investors that contrary to media reports, it is cooperating with the US Department of Justice who is seeking information about sales, marketing and pricing of select generic products. Mayne Pharma says it is one of several companies to receive a subpoena from the DOJ. The company says it believes the investigation will not have a material impact on its future earnings. Shares in Mayne Pharma are trading down 12.32 per cent at $1.50.

Magellan Financial Group Limited (ASX:MFG) says its funds under management as at the end of October amounted to $42.24 billion. In October, Magellan experienced net inflows of $550 million, which included net retail inflows into global equities strategies of $59 million. Shares in Magellan Financial Group are trading up 2.48 per cent at $21.08.

Best and worst performers

The best performing sector is REITs, gaining 0.5 per cent to 1,311. Shares in Charter Hall have risen 1.93 per cent and trading at $4.23. Shares in National Storage and Iron Mountain are also stronger.

The worst performing sector is Energy, falling 1.3 per cent to 7,986. Shares in Origin Energy have fallen 2.37 per cent, trading at $5.15. Shares in Oil Search and Beach Energy are also lower.

IPOs

Apollo Tourism and Leisure Limited (ASX:ATL) started trading today. The recreational vehicle hire company floated with an issue price of $1.00, opened at $1.30 and is currently trading at $1.295.

Gold and the dollar

Finally, to gold and the dollar: Gold is trading at $US1,304 an ounce.
The Australian dollar is buying $US0.77




 

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.