Lower again despite strong US leads: Aus shares 0.82% down at noon

Market Reports

by Jessica Amir

The Australian share market has dived lower again for the second day in a row, despite strong record leads from Wall Street.

All of the sectors are trading below the line today with Energy leading the decliners after traders began to take profits in oil overnight, which brought down the commodity’s price.

Utilties are in as the close second worst performer, followed by Reits after Cromwell Property Group (ASX:CMW), agreed to sell its entire stake in Investa Office Fund (ASX:IOF) for $276 million.

The S&P/ASX 200 index is 49 points down or 0.82 per cent lower at 5,652.

On the futures market the SPI is 37 points lower.

Company news

Navitas (ASX:NVT) a global education service provider has announced it will snap up Christchurch College of English Limited (CCEL) for NZ$5 million. CCEL has one of the highest quality ratings from the New Zealand Qualifications Authority. The buy represents a multiple of 5 times its FY17 EBITDA. The deal will allow the company to increase its offering to its partner universities and expand its footprint. Shares in Navitas (ASX:NVT) are trading 2.76 per cent lower to $4.41.

Centuria Capital Group (ASX:CNI) is undertaking a $60 million accelerated non renounceable entitlement offer. The property manager is offering an issue price of $1.28 which is a 5.2 per cent discount to its closing price yesterday. New securities will also equally rank existing securities. Shares in Centuria Capital Group (ASX:CNI) are trading a trading halt but last traded $1.35.

The best and worst performers

The best performing sector of a bad bunch today is Industrials, losing 0.6 per cent to 5,608. Shares in ALS (ASX:ALS) have risen 1.47 per cent and trading at $7.94. Shares In Qantas Airways (ASX:QAN) and Seven Group Holdings (ASX:SVW) are higher.

The worst performing sector is Energy, falling 1.4 per cent to 9,098. Shares in Caltex Australia (ASX:CTX) have fallen 1.87 per cent, trading at $31.54. Shares in Beach Energy (ASX:BPT) and Origin Energy (ASX:ORG) are also lower.

Gold and the dollar

Gold is trading at $US1,275 an ounce and one Australian dollar is buying 78.55 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.