News: Midday: ASX sinks 1% to slip under 5,900

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Following negative leads the Australian share market has fallen almost 1 per cent in morning trade. The energy sector is one of the few making gains on the back of a higher oil price. Most sectors are in the red with property, telco and financial sectors dragging the benchmark south. 

 

Figures

 

The S&P/ASX 200 index has fallen 56 points to 5,891. On the futures market the SPI is 65 points down. 

 

Company news

 

Santos Limited (ASX:STO) has reported higher production but declining sales revenue in the first quarter of the 2015 financial year. The oil and gas company boosted quarterly output by 15 per cent to 14 million barrels of oil equivalent. Sales revenue dropped 10 per cent to $825 million as the price it gained per a barrel of oil almost halved. CEO David Knox says the company continues to make solid inroads in cutting production costs per barrel across the business. Shares in Santos have lifted 1.26 per cent and are trading at $8.03. 

 

Automotive Group Holdings Limited (ASX:AHE) has secured its first Mazda dealership in Brisbane as it moves to strength its portfolio of brands in Queensland. The new Browns Plains Mazda dealership will start trading from temporary premises while a new dealership is constructed. Managing Director Bronte Howson says the move is part of the groups’ strategy of establishing or acquiring dealerships within vibrant and operationally efficient retail hubs. Shares in Automotive Group Holdings have lost 0.47 per cent and are trading at $4.23. 

 

Best and worst performers

 

The best performing sector is energy, gaining 0.5 per cent to 11,748. Shares in WorleyParsons Limited (ASX:WOR) have risen 6.45 per cent and trading at $10.73. Shares in Karoon Gas Australia Limited (ASX:KAR) and Santos Limited (ASX:STO) are also stronger. 

 

The worst performing sector is real estate investment trusts, falling 1.7 per cent to 1,291. Shares in Westfield Corp Limited (ASX:WFD) have eased 2.41 per cent, trading at $9.70. Shares in Investa Office Fund (ASX:IOF) and Novion Property Group (ASX:NVN) are also lower. 

 

Gold and the dollar

 

Gold is buying $US1,199 an ounce. 

The Australian dollar is buying $US0.7784.