Energy sector leading the way: ASX 0.3% lower at noon

Market Reports

by Rachael Jones

The Australian share market opened flat following positive leads from Wall Street and is now tracking 0.3 per cent lower at noon. Shares in CSL (ASX:CSL) have seen a drop this morning after updating the ASX on the Process to its own Good Supply Practice license in China. This will allow CSL to work directly with clinicians. Syrah Resources is down as is the DuluxGroup. Meanwhile, New Hope Corp is up and so is Seven West Media. The Energy sector is leading the way and the Healthcare sector trailing behind.

The S&P/ASX 200 index is 20 points down at 6,668. On the futures market the SPI is 23 points lower.

Company news

Otto Energy (ASX:OEL) is pleased to advise that production from the Green #1 well on the Lightning field in Matagorda County Texas in the USA has now reached a steady production state as final facilities commissioning has been completed. Otto has a 37.5 per cent working interest and a 28.5 per cent Net Revenue Interest in the leases covering this field. Shares in Otto Energy (ASX:OEL) are up 10.4 per cent $0.05.

NetComm Wireless (ASX:NTC) has announced that a copy of the orders approving the scheme of arrangement under which Casa Systems, Inc. will acquire all of the issued ordinary shares in NetComm has been lodged with the Australian Securities and Investments Commission (ASIC). As a result, the Scheme is now legally effective. NetComm will now apply for its shares to be suspended from trading on the ASX with effect from the close of trading today. Shares in NetComm Wireless (ASX:NTC) are up 0.5 per cent to $1.10.

Taking a look at an IPO now - VGI Partners (ASX:VGI) is a fund manager with a concentrated portfolio specialising in global equities. It issued shares at $5.50 and started trading on the ASX at $10.51 and is currently trading at $10.10.

Best and worst performers

The best-performing sector is Energy, adding 2.1 per cent, while the worst performing sector is Healthcare, shedding 2.1 per cent.

The best performing stock in the S&P/ASX 200 is New Hope Corp (ASX:NHC), rising 8.2 per cent to $2.76, followed by shares in Seven West Media (ASX:SWM) and Beach Energy (ASX:BPT).

The worst performing stock in the S&P/ASX 200 is Syrah Resources (ASX:SYR), dropping 4.8 per cent to $0.91, followed by shares in DuluxGroup (ASX:DLX) and CSL (ASX:CSL).

Asian markets

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

Commodities and the dollar

Gold is trading at US$1,408 an ounce.
Iron ore price rose 2.8 per cent to US$117.25
Iron ore futures are pointing to a rise of 1.7 per cent.
One Australian dollar is buying 69.37 US cents.

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