Dismal start: Aus shares 1.48% lower at noon

Market Reports

by Carolyn Herbert

It has been a dismal start to the trading session for the Australian share market, dropping at the open and continuing to be sold off in the first two hours of trade, tracking 1.48 per cent lower at noon. Most sectors are in the red today, with Health Care the biggest casualty so far, followed by losses in Financials and Industrials. Telcos is the only sector in the black so far, but only just up around only 0.1 per cent.

The S&P/ASX 200 index is 87 points down at 5,698. On the futures market the SPI is 64 points lower.

Asian markets

Checking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.42 per cent, Hong Kong’s Hang Seng has lost 0.56 per cent and the Shanghai Composite has lost 0.41 per cent.

Company news

Arena REIT Limited (ASX:ARF) has announced the acquisition of a portfolio of nine Early Learning Centre properties under development at a total cost of $65 million. The acquisition will be mainly funded by an institutional placement of $55 million. Arena has also announced FY18 distribution guidance of 12.8 cents per security. Shares in Arena REIT last traded at $2.09.

Yancoal Australia Limited (ASX:YAL) says it will establish a 51:49 unincorporated joint venture with Glencore in relation to Hunter Valley Operations. The two companies will work together to unlock operational synergies indentified with Yancoal’s existing operations. Glencore will also subscribe for US$300 million of any shortfall shares in Yancoal’s proposed entitlement offer. Shares in Yancoal Australia last traded at $0.39.

Best and worst performers

The best performing sector is Telcos, gaining 0.04 per cent to 1,456. Shares in Telstra (ASX:TLS) have risen 0.12 per cent and trading at $4.13. Shares in Vocus Group (ASX:VOC) and Spark New Zealand (ASX:SPK) are weaker.

The worst performing sector is Health Care, falling 1.99 per cent to 22,431. Shares in Mayne Pharma (ASX:MYX) have fallen 3.79 per cent, trading at $0.95. Shares in Nanosonics (ASX:NAN) and Virtus Health (ASX:VRT) are also lower.

Gold and the dollar

Gold is trading at $US1,260 an ounce.
The Australian dollar is buying $US0.7969.


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