The Australian share market sharply fell at the open, defying mostly positive leads from Wall Street and was 0.35 per cent lower at noon. Half of the sectors are trading in the red so far this session, after US Crude prices sank 4 per cent overnight, which ended the commodities longest bullish run in five years. Energy, Financials, Telcos, Industrials and Utitllies are all lower. Bucking the trend and trading higher are the Healthcare, Materials, REITs and Consumer sectors, with Healthcare being the only shiner so far and trading over 1 per cent higher.
The S&P/ASX 200 index is 18 points down at 5,745.
On the futures market the SPI is 2 points lower.
Japan’s Nikkei has lost 0.18 per cent, Hong Kong’s Hang Seng has added 0.06 per cent and the Shanghai Composite has lost 0.01 per cent.
Local economic news
The ABS has revealed Australia’s trade surplus has soared to $2.471 billion in May 2017, in seasonally adjusted terms. It comes as the international balance on goods and services increased by $2.381 billion on the surplus in April.
The strongest growth came from exports in goods and services which rose 9 per cent to $32.781 billion, while non-rural goods rose 13 per cent or by $2.333 billion. Meantime, Australia's imports of non-monetary gold fell 25 per cent.
Resolute Mining (ASX:RSG) has been awarded two highly prospective large scale gold exploration concessions in the Sinai and Eastern Desert’s of Egypt, by Egyptian Mineral Resource Authority (EMRA). It comes as the gold producer won the first round of the Egyptian government’s international tender process to explore the sites. One block (the Um Samra) is 819 squared kilometers and about 70 kilometres from an existing Gold mine, while the other block (the Bokari) is over 1,500 squared kilometers, about 30 kilometres from the other site. Resolute says the concessions have well-endowed gold belts and potential to yield mineable deposits. Shares in Resolute Mining (ASX:RSG) are trading 0.43 per cent higher at $1.16.
Doray Minerals Limited (ASX:DRM) has announced that mining at its Andy Well underground mine will be suspendered on 1 November 2017 after it reported a reduction in strike length. From 1 November, the Australian gold producer’s Andy Well operation in the Murchison region of WA will be placed in care and maintenance. As a result, Doray says its gold production has been reduced and forecast unit costs of the operation remain high. The company’s net debt has reduced to about $23.4 million. Shares in Doray Minerals Limited (ASX:DRM) are 22.95 per cent lower at 24 cents.
The best and worst performers
The best performing sector is Healthcare, gaining 0.79 per cent to 23,875. Shares in Sirtex Medical Limited (ASX:SRX) have risen 1.91 per cent and trading at $17.08. Shares in Estia Health Limited (ASX:EHE) and CSL Limited (ASX:CSL) are also stronger.
The worst performing sector is Financials (ex-Reits), falling 0.83 per cent to 7,248. Shares in Magellan Financial Group Limited (ASX:MFG) have fallen 1.82 per cent, trading at $27.51. Shares in Challenger Limited (ASX:CGF) and Perpetual Limited (ASX:PPT) are also lower.
Commodities and the dollar
Gold is trading at $US1,225 an ounce and one Australian dollar is buying 75.87 US cents.