Eco slow down concerns: Aus shares slip 1.2% lower at noon

Market Reports

by Jessica Amir

The Australian share market wiped out yesterday’s gains and hit a level it touched last Tuesday, and these are levels the local bourse last hit in December two years ago.

Most of our sectors are in the red today with energy down the most after the oil price fell to US$49.52.

Coupled with that, we’ve also had negative leads to follow after the Dow Jones lost over 500 points, seeing its worst close in seven months on the back of economic concerns from China and Europe.

At noon the S&P/ASX 200 index was 70 points or 1.2 per cent lower at 5,589, that’s 12 per cent away from our 10 year high the XJO hit late August 2018.

On the futures market the SPI is 88 points lower.

Company news

Fonterra Shareholders' Fund (ASX:FSF) has announced Deborah Capill will be its new managing director of people and culture, after leaving her role as global head of human resources for Deutsche Post DHL Group. Deborah will be taking up the role with the Fonterra management team on 1 February 2019. Shares in Fonterra Shareholders' Fund (ASX:FSF) last traded at $4.30.

CIMIC Group’s (ASX:CIM) global mining services provider, Thiess, has landed a $150 million contract extension with BHP Billiton (ASX:BHP) Mitsubishi Alliance’s Caval Ridge coal mine in Queensland’s Bowen Basin. The contract variation will see Thiess mine additional overburden through to 2020. The company began working at Caval Ridge in November 2017. Shares in CIMIC Group (ASX:CIM) are trading 1.8 per cent lower at $42.48 at noon.

Best and worst performers

The best performing sector is S&P/ASX Telco Services adding 0.3 per cent. The worst performing sector is S&P/ASX Energy, shedding 2.5 per cent after the oil price dropped 2.6 per cent on the back of weaker Chinese demand, from the world’s largest oil importer.

The best performing stock in the S&P/ASX 200 is Northern Star Resources (ASX:NST), rising 5.6 per cent to $8.75, followed by shares in St Barbara Limited (ASX:SBM) and Lynas Corporation Limited (ASX:LYC).

The worst performing stock in the S&P/ASX 200 is Caltex Australia Limited (ASX:CTX), dropping 6.6 per cent to $25.27 after it announced its 2018 historic cost profit after tax outlook is between $530 million and $550 million, a drop of 13 per cent compared to the same time last year. Following the worst performer is Smartgroup Corporation Ltd (ASX:SIQ) and Infigen Energy (ASX:IFN).

Commodities and the dollar

Gold is trading at US$1,247 an ounce.
Iron ore price fell 0.4 per cent to US$70.47 and its futures are pointing to a fall of 0.6 per cent.
One Australian dollar is buying 71.82 US cents.