Returning from the Australia Day long weekend Aussie shares have followed global markets lower and plunged more than 1 per cent in morning trade. Extending last week’s declines all sectors have sunk into negative territory with the miners faring the worst. The local benchmark has wiped more than $20 billion off as fears mount over emerging markets and the US earnings season and ahead of a mid-week US Federal Reserve meeting.
Across the local board JB Hi-Fi Limited
(ASX:JBH) is a bright exception with the electrical retailer’s stock rising after forecasting 10 per cent first half profit growth. Also defying the negative trend a piece of positive economic data - National Australia Bank Limited’s
(ASX:NAB) latest business survey has shown business conditions lifted to a 2.5 year high at the end of 2013.
Figures
The S&P/ASX 200 index has plunged 49.3 points to 5,192. On the futures market the SPI is 14 points lower.
Company news
Mining services company Ausdrill Limited
(ASX:ASL) has entered into a strategic alliance with Africa-focussed gold explorer Azumah Resources Limited
(ASX:AZM). Under the deal Ausdrill will invest $2 million into Azumah and Azumah has appointed Ausdrill as its preferred contract mining services provier.
Oil and gas explorer and producer AWE Limited
(ASX:AWE) has inked a deal to sell 11.25 per cent of BassGas and a 9.75 per cent interest in part of the Trefoil field for $85 million to an Indian company. AWE says the sale helps to ensure it is well funded and believes its growth outlook is excellent.
Land developer United Overseas Australia Limited
(ASX:UOS) has flagged a potential $US24 million acquisition in Myanmar which would enable the company to develop more than 2 acres of land in the Yangon region.
Mining services group AJ Lucas Group Limited
(ASX:AJL) has informed the market Phil Arnall will act as its interim CEO as it searches for a replacement for Allan Campbell who resigned today.
Best and worst performers
All sectors are trading lower at noon: The sector with the smallest losses is telco services losing 1.2 points to 1,790. Shares in Telecom Corp of New Zealand
(ASX:TEL) have eased 0.89 per cent and trading at $2.23. Shares in M2 Telecommunications Group Limited
(ASX:MTU) and Telstra Corporation Limited
(ASX:TLS) are also weaker.
The worst performing sector is materials, retreating 142 points to 9,921. Shares in Resolute Mining Limited
(ASX:RSG) have fallen 6.09 per cent, trading at $0.54. Shares in PanAust Limited
(ASX:PNA) and Alacer Gold Corp
(ASX:AQG) are also lower.
Gold and the dollar
The price of gold eased overnight and has weakened further to $US1,257 an ounce.
A rebound in business conditions at the end of last year has lifted the Australian dollar this morning to $US0.8766.
