Tuesday tumble: Aus shares 0.5% lower at noon

Market Reports

by David Chau

The Australian share market sunk into negative territory as soon as it opened for business. Large numbers of investors have been selling off their shares, and the local bourse is tracking 0.5% lower at lunchtime.

The Australian dollar has weakened against the US greenback, and the equities sell-off may be due to increasing US bond yields. Also, Australia’s 10-year government bond yield has risen above 2.7%.

Most sectors are in the red – with healthcare and utilities sectors taking the biggest hits, and the big four banks trading lower –0.4 and 1.1 per cent.

The S&P/ASX 200 index is 27 points lower at 5,319. On the futures market, the SPI is has fallen by 28 points.

Company news

Sydney Airport (ASX:SYD) has appointed Hugh Wehby as its new Chief Operating Officer, and he will take up that role from January 2017. Mr Wehby is currently the Chief Financial Officer, and he will replace Shelley Roberts, who has resigned to take up an external chief executive role. The company says it has started looking for a new CFO. Shares in Sydney Airport are trading down 1.5 per cent at $5.91.

OFX Group (ASX:OFX), which used to be known as OzForex, has released its half year results ending 30 September 2016. OFX reported its underlying NPAT fell 21% to $9.7 million, and its underlying EBITDA fell 25% to $13.5 million. The company declared a fully franked interim dividend of 2.8 cents per share, in line with the Board’s payout ratio of 70-80% of NPAT. OFX says it saw a return to modest revenue growth despite unfavourable market conditions post-Brexit. Shares in OFX Group are trading down 13.12 per cent at $1.41.

Best and worst performers

The best performing sector is Energy, gaining 0.4 per cent to 8,317. Shares in Santos have risen 2.88 per cent and trading at $3.93. Shares in Worley Parsons and Beach Energy are also higher

The worst performing sector is Healthcare, falling 1.1 per cent to 20,013. Shares in Virtus Health have fallen 2.9 per cent, trading at $5.86. Shares in Ramsay Health Care and Cochlear are also lower.

Gold and the dollar

Gold is trading at $US1,228 an ounce.
The Australian dollar is buying $US0.7568.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?