Market slump: Aus shares 1.34% lower at noon

Market Reports

by Carolyn Herbert

Following the worst trading day on US markets this year, it’s no surprise that the Australian share market has followed suit, plunging into the red at the open and now tracking 1.34 per cent lower at lunchtime. While it’s a sea of red across most sectors, the Financials space, along with Materials and Energy are being heavily sold off. As such, we’ve seen losses in all of the big four banks of between 1.5 and 2 per cent and the big miners BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) shedding over 2 per cent. The only sector which is currently in the black is REITs, but by the skin of its teeth up around 0.1 per cent.

The S&P/ASX 200 index is 77 points down at 5,698. On the futures market the SPI is 75 points lower.

Company news

Evolution Mining Limited (ASX:EVN) says total gold production in the March 2017 quarter is expected to be in line with plan at around 200,000 ounces. The gold miner also has reaffirmed that it’s on track to comfortably meet FY17 production guidance of 800,000 to 860,000 ounces of around an all-in sustained cost $900 to $960 per ounce. Evolution’s March quarter 2017 results will be released on the 20th of April 2017. Shares in Evolution Mining are trading up 2.28 per cent at $2.24.

Villa World Limited (ASX:VLW) has announced an equity offer and a debt offer to support its growth objectives and diversify its debt capital structure. The residential property developer says it will undertake a $20 million placement of new shares at $2.25 per share, a Share Purchase Plan capped at $10 million, and an offer of corporate bonds seeking to raise $50 million. The initiatives are aimed at providing the company with increased financial capacity to grow inventory, whilst maintaining prudent gearing levels. Shares in Villa World last traded at $2.38.

Best and worst performers

The best performing sector is REITs, gaining 0.6 per cent to 1,345. Shares in Dexus Property Group (ASX:DXS) have risen 1,31 per cent and trading at $9.64. Shares in GPT (ASX:GPT) and SCA Property Group (ASX:SCA) are also stronger.

The worst performing sector is Financials, falling 1.9 per cent to 7,387. Shares in BT Investment Management (ASX:BTT) have fallen 2.93 per cent, trading at $9.61. Shares in Credit Corp (ASX:CCP) and QBE Insurance (ASX:QBE) are also lower.


Fat Prophets Global Contrarian Fund (ASX:FPC) started trading today. The listed investment company floated with an issue price of $1.10, opened at $1.50, and is currently trading at $1.36.

Gold and the dollar

Gold is trading at $US1,246 an ounce and the Australian dollar is buying $US0.7669.


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.