News: Midday: ASX painted red across the board

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Steep falls on global markets overnight have pushed the Australian share market almost 2 per cent down in morning trade to hit an eight-month low. All sectors have retreated into the red with energy and mining sectors trading more than 2 per cent lower. The gold sub index is also sinking despite the price of the perceived safe haven commodity strengthening almost $US20 overnight. Selling is being stoked by fears for the global economy’s growth prospects one day after the International Monetary Fund cut its forecasts. 

 

Figures

 

The S&P/ASX 200 index has plunged 89 points to 5,208 at noon. On the futures market the SPI is 86 points lower. 

 

Economic news

 

The highs of the housing market look to be coming off the peak according to new data showing home loans fell more than expected in August. The Australian Bureau of Statistics reports loans granted dropped 0.9 per cent to 51,787, against expectations for a gain of 0.2 per cent. Total housing finance by value dropped 1.2 per cent to $28 billion and the value of investor lending dipped 0.1 per cent to $11.4 billion in the month. First home buyers dropped to a record low in August. 

 

Company news

 

Finbar Group Limited (ASX:FRI) has completed the Spring View Towers joint venture project in Perth on time and on budget. The property developer’s latest project is valued at $100.3 million and consists of 188 residential apartments in two buildings. Finbar forecasts sales revenue from pre-sales will be a large contributor to its earnings in the first half of the current financial year. Spring View Towers is the first development to be completed within the Spring precinct which is a landmark metropolitan activity centre delivered by Landcorp and the City of Belmont. Shares in Finbar Group have slipped 0.72 per cent to $1.37 at noon.  

 

Amid a sea of red across the board shares in Kimberley Diamonds Limited (ASX:KDL) have defied the trend and soared after unveiling plans to spin-off its copper-gold assets into a new company. The mining company has made the announcement while also revealing it has been awarded a gold project in a premier mining district in southern Spain. Kimberly Diamonds plans to transfer all its copper-gold assets into a new entity and distribute the shares to existing shareholders in the near future. The company says it had actively sought a flagship copper-gold project to complement its existing copper-gold assets which it believed were undervalued by the market. Shares in Kimberley Diamonds have soared 27.78 per cent to $0.12 at noon.  

  

Best and worst performers

 

All sectors have sunk steeply into negative territory: The sector with the fewest falls is utilities, falling 0.8 per cent to 5,788. Dragging on the sector are shares in AGL Energy Limited (ASX:AGK) slipping 0.58 per cent and trading at $13.75. Shares in DUET Group (ASX:DUE) and APA Group (ASX:APA) are also weighing on the utilities sector. 

 

The worst performing sector is energy, retreating 2.9 per cent to 13,356. Shares in Whitehaven Coal Limited (ASX:WHC) have fallen 7.29 per cent, trading at $1.53. Shares in Beach Energy Limited (ASX:BPT) and Horizon Oil Limited (ASX:HZN) are also lower. 

 

Gold and the dollar

Gold is buying $US1,224 an ounce.
The Australian dollar is buying $US0.8754.