Telcos on the up: ASX 0.9 per cent lower at noon

Market Reports

by Rachael Jones

The Australian share market opened lower following mixed leads from Wall Street and is now tracking 0.9 per cent lower at noon. Local tech stocks followed the lead of Wall St where they saw a dip after concerns were renewed for potential for stricter regulations. The best performer sector is Telcos despite Telstra (ASX:TLS) trimming their profit forecast for financial year 2019 to make allowances for properties not being signed up to the NBN network. Iron ore price rose 0.3 per cent to $66.79 a tonne and its futures are pointing to a rise of 2.4 per cent. 53 points lower. The S&P/ASX 200 index is 53 points down or 0.9 per cent lower at 6177. On the futures market the SPI is 65 points lower.

Local economic news

In trend terms, the balance on goods and services was a surplus of $1,425 million in July 2018, an increase of $17 million on the surplus in June 2018.

In seasonally adjusted terms, the balance on goods and services was a surplus of $1,551m in July 2018, a decrease of $386m on the surplus in June 2018.

And the trend estimate for total dwellings approved fell 1.3 per cent in July. The seasonally adjusted estimate for total dwellings approved fell 5.2 per cent in that month.

Company news

Argentine-focused lithium exploration and project development company Lake Resources NL (ASX:LKE) has confirmed drilling will start early October at the Cauchari lithium project. It's hope this drilling will show an extension of the high grade lithium brine sequence from adjoining lithium resources based on recent seismic lines. The initial plan is to drill three holes, with a possible fourth hole, to depths of 400 metres. Shares in Lake Resources NL (ASX:LKE) 3.1 per cent lower at 9 cents.

Zenitas Healthcare (ASX:ZNT) has entered into a binding agreement to acquire the remaining 49 per cent of the shares in aged care services provider NexttCare sooner than originally agreed. Zenitas acquired 51 per cent of NexttCare in July 2017 and was obliged to acquire the remaining 49 per cent in July 2019. Operating in Victoria, New South Wales, Queensland and South Australia, NexttCare services more than 2,000 clients. Shares in Zenitas Healthcare (ASX:ZNT) 0.7 per cent lower $1.41

Best and worst performers

The best performing sector is telcos adding 2.4 per cent while the worst performing sector is healthcare shed 2.5 per cent.

The best performing stock in the S&P/ASX 200 is Telstra (ASX:TLS), rising 3.2 per cent to $3.12, followed by shares in Iluka Resources (ASX:ILU) and Syrah (ASX:SYR).

The worst performing stock in the S&P/ASX 200 is Sigma Healthcare (ASX:SIG),dropping 9.5 per cent to $0.55, followed by shares in Speedcast International (ASX:SDA) and Trade Me Group (ASX:TME).

Asian markets

Japan’s Nikkei has lost 0.5 per cent, Hong Kong’s Hang Seng has lost 0.3 per cent and the Shanghai Composite hasgained 0.1 per cent.

Commodities and the dollar

Gold is trading at $US1,199 an ounce.
One Australian dollar is buying 71.98 US cents.

Cryptocurrencies

Some of the most traded cryptocurrencies are trading lower. Bitcoin has fallen 12 per cent to US$6493, Ethereum fallen about 19 per cent to US$231 and EOS lost about 21 per cent to $5.12