Weak Wednesday: Aus shares 0.31% lower at noon

Market Reports

by Jessica Amir

The Australian share market dived at the open, with a drop in the Iron Ore price taking its toll on the big miners, with the likes of Forestcue Metals (ASX:FMG) and BHP (ASX:BHP) taking a hit. That contributed to our local bourse remaining under water in the first two hours of trade. Also copping a hit today are Telcos.

Despite another record run on Wall Street, over half of our sector are in negativity territory. A drop in the oil price overnight also saw our energy sector come under the knife.

The S&P/ASX 200 index is 17 points down or 0.31 per cent lower at 5,696. On the futures market the SPI is 20 points lower.

Asian markets

Japan’s Nikkei has lost 0.03 per cent, Hong Kong’s Hang Seng has added 0.15 per cent and the Shanghai Composite has lost 0.06 per cent.

Company news

Bass Metals (ASX:BSM) is conducting a capital raising to fund the purchase of the Graphmada Graphite mine. The graphite producer intends on raising $2.5 million (before costs) through an institutional placement at 1.1 cent per share. Bass Metals also plans to raise another $2.5 million (before costs) through a 1 for 6 non-renounceable entitlement offer, also at the same price per share. On completion Bass Metals plans to raise a further $1 million via a deferred placement. Morgans are one of the lead managers. Shares in Bass Metals (ASX:BSM) last traded at 2 cents.

Arafura Resources (ASX:ARU) has extended the life of its rare earth mine in the Northern Territory to beyond 30 years. After conducting a feasibility study at the Nolans Mine, it found ‘more mineral resources’ available for potential conversion to ore reserves. Arafura Resources says, two thirds of measured and indicated resources have been identified as bearing phosphate-rich materials. Arafura Resources (ASX:ARU) are trading 9.52 per cent higher at $0.12.

The best and worst performers

The best performing sector is Healthcare, gaining 0.75 per cent to 22,586. Shares in CSL Limited (ASX:CSL) have risen 1.74 per cent and trading at $133.23. Shares in Ansell (ASX:ANN) and Fisher & Paykel Healthcare Corporation (ASX:FPH) are also stronger.

The worst performing sector is Telcos, falling 1.01 per cent to 1,273. Shares in TPG Telecom (ASX:TPM) have fallen 6.19 per cent, trading at $5.15. Shares in Telstra Crop (ASX:TLS) are lower and Speedcast International (ASX:SDA) are trading higher.

Gold and the dollar

Gold is trading at $US1,312 an ounce and one Australian dollar is buying 80.18 US cents.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.