Lacking direction: Aus shares 0.35% lower at noon

Market Reports

by Carolyn Herbert

It has been a sluggish start to the trading session for the Australian share market, dropping at the open and lingering in the red in the first two hours of trade, tracking 0.35 per cent lower at noon. Sectors are mixed today, but its Telcos that is proving to be the biggest drag on the market so far with losses in Telstra (ASX:TLS) and TPG Telecom (ASX:TPM). We’ve also seen continued softness in the materials space. On the other hand, Industrials and Utilites are making some small gains.

The S&P/ASX 200 index is 20 points down at 5,724. On the futures market the SPI is 7 points lower.

Asian markets

Checking in with how Asian markets are tracking now, Japan’s Nikkei has lost 0.38 per cent, Hong Kong’s Hang Seng has lost 0.11 per cent and the Shanghai Composite has gained 0.2 per cent.

Economic news

According to the latest International trade figures from the Australian Bureau of Statistics, the balance on goods and services was a surplus of $856 million in June 2017, seasonally adjusted. This represents a decrease of $1.17 billion on the surplus in May 2017. Exporting of goods fell slightly, however imports rose for June.

Company news

Northern Star Resources Limited (ASX:NST) says its total reserves have increased by 2.3 million ounces to 3.5 million ounces. The gold miner says the increased inventory will generate significant production growth, with guidance for FY19 of 550,000 to 600,000 ounces. Northern Star says it now has mine life visibility of 10 years. Shares in Northern Star Resources are trading up 2.78 per cent at $4.62.

Brisbane Broncos Limited (ASX:BBL) has announced that the before tax profit of the group for FY17 is expected to be around $3.4 million, compared to $3.06 million in the previous corresponding period. The company says game day profits have been negatively impacted by crowd shortfalls. However it says sponsorship revenue shows strong growth. Shares in Brisbane Broncos are trading flat at $0.50.

Best and worst performers

The best performing sector is Utilities, gaining 0.38 per cent to 8,406. Shares in AGL Energy (ASX:AGL) have risen 0.77 per cent and trading at $24.90. Shares in Spark Infrastructure (ASX:SPK) and APA Group (ASX:APA) are also stronger.

The worst performing sector is Telcos, falling 1.17 per cent to 1,433. Shares in TPG Telecom (ASX:TPM) have fallen 1.36 per cent, trading at $5.46. Shares in Speedcast International (ASX:SDA) and Telstra (ASX:TLS) are also lower.

IPOs

Sienna Cancer Diagnostics Limited (ASX:SDX) started trading today. The biotechnology company floated with an issue price of $0.20, opened at $0.20 and is currently trading at $0.15.

Gold and the dollar

Gold is trading at $US1,264 an ounce and the Australian dollar is buying $US0.7930.




 

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