Lacking leads: Aus shares flat at noon

Market Reports

by Jessica Amir

The Australian share market took a dip into the red at the open, but regained early losses and is now holding firm around the flat line. Over half of the market is pushing higher though, while energy is leading the decliners after the oil price took a slight dip. Consumer staples and financials are also putting a lid on gains so far this session.

CBA (ASX:CBA) is leading the other big four banks lower with ANZ (ASX:ANZ), NAB (ASX:NAB) and Westpac (ASX:WBC) putting their toes in the water.

Meantime, Rio (ASX:RIO) is also trading below the line after the iron ore price softened.

The S&P/ASX 200 index was flat 5,894.

On the futures market the SPI is 11 points higher.

Company news

Myer Holdings (ASX:MYR) largest shareholder, Premier Investment (ASX:PMV) says it is not intending on taking over the retail giant, while it will also be voting against the appointment of all directors proposed by Myer, including the appointment of new Chairman Gary Hounsell. The retail investment house, also wrote to fellow shareholders noting it was bitterly disappointed in Myer’s shares since it bought its stake, noting ‘Myer has lost its way’, with ‘billions of dollar of market cap’ 'vanishing'. Shares in Myer Holdings (ASX:MYR) are trading 0.34 per cent lower at $0.74.

And the company planning a constellation of 200 nanosatellites, Sky and Space Global (ASX:SAS) has successfully sent and received messages from a regular smartphone to a $1 smartphone using SAS’s network. A $1 smartphone was used in a test by Social Finance Systems to validate the use of SAS’ 3 Diamond nanosatellites, that were launched into space in June. The company says this highlights it can tap into a new $3.7 trillion global market opportunity. Shares in Sky and Space Global (ASX:SAS) are trading 6.06 per cent higher at $0.18.

And Gold explorer and developer Cardinal Resources (ASX:CDV) has raised C$12 million. Cardinal says if the over-allotment option is exercised in full, it gross proceeds should equal C$13.8 million. The proceeds will be used to continue exploration and development works at its Namdini Gold Project and other Ghanaian properties. Shares in Cardinal Resources (ASX:CDV) last traded at $0.64.

The best and worst performers

The best performing sector is utilities, gaining 0.8 per cent to 8,450. Shares in Ausnet Services (ASX:AST) have risen 1.15 per cent and trading at $1.76. Shares in APA GROUP (ASX:APA) and AGL Energy (ASX:AGL) are also stronger.

The worst performing sector is energy, falling 0.7 per cent to 9,428. Shares in Whitehaven Coal (ASX:WHC) have fallen 1.65 per cent, trading at $3.58. Shares in Santos (ASX:STO) and Oil Search (ASX:OSH) are also lower.

Commodities and the dollar

Gold is trading at $US1,283 an ounce and one Australian dollar is buying 78.14 US cents.