by Peter Milios
At noon, the S&P/ASX 200 is 0.3 per cent lower at 7,257.70.
There is a likelihood of testing chart support below 7200 as the market enters a seasonally weak period. If the US market also declines from its level of 4200, the ASX may even reach the 6900 level. This downward trend is influenced by tax loss selling and a decrease in buyer activity during the “confession season”. Out of the 11 sectors, nine have experienced a decline, with the financials sector causing the most impact. The major banks have witnessed a decrease of 0.4 to 1 per cent following their rise on Friday. Other sectors that have performed poorly include property, communications, discretionary, and materials, while the technology and energy sectors remain the only significant outperformers.
The SPI futures are pointing to a fall of 22 points.
Best and worst performers
The best-performing sector is Energy, up 0.89 per cent. The worst-performing sector is Financials, down 0.68 per cent.
The best-performing large cap is Orica (ASX:ORI), trading 1.28 per cent higher at $15.85. It is followed by shares in Santos (ASX:STO) and Whitehaven Coal (ASX:WHC).
The worst-performing large cap is Allkem (ASX:AKE), trading 3.49 per cent lower at $15.05. It is followed by shares in Pilbara Minerals (ASX:PLS) and Fisher & Paykel Healthcare Corporation (ASX:FPH).
Asian news
Asia-Pacific markets traded mixed on Monday after the Group of Seven summit in Hiroshima concluded and talks on the debt ceiling are slated to resume in the US.
Hong Kong’s Hang Seng index rose 0.16 per cent, while the Hang Seng Tech index also rose 0.39 per cent. In mainland China, the Shanghai Composite slid 0.15 per cent and the Shenzhen Component was 0.44 per cent lower as the People’s Bank of China left its 1-year and 5-year loan prime rates unchanged.
South Korea’s Kospi reversed earlier losses earlier and gained 0.78 per cent, and the Kosdaq rose 0.8 per cent.
Japan’s markets also erased earlier losses, with the Nikkei 225 gaining 0.11 per cent and the Topix rising 0.14 following its outperformance last week.
Company news
Austco Healthcare (ASX:AHC) has been awarded a $3.9m contract to supply its advanced IP nurse call system for a new aged care facility. Austco Healthcare CEO, Clayton Astles, said, “This contract win is a testament to the strength of our product offering and our commitment to delivering innovative solutions.” Shares are trading 13 per cent higher at 13 cents.
Spacetalk (ASX:SPA) launches the Adventurer 2 smartwatch, an all-in-one smartwatch, phone and GPS safety device for children aged 5-12. CEO and MD Simon Crowther, said, “Today’s launch illustrates execution against several key initiatives enabling our return to growth, notably enhancing Spacetalk’s product ecosystem.” Shares are trading 3.23 per cent higher at 3.2 cents.
EBR Systems (ASX:EBR) reports positive results for its pivotal SOLVE-CRT trial, paving the way to FDA Approval. Allan Will, Chairman of EBR Systems commented, “[the result] validates EBR’s technology as a key treatment for those suffering from cardiac arrhythmia.” Shares are trading 9.94 per cent higher at 99.5 cents.
Commodities and the dollar
Gold is trading at US$2000.20 an ounce.
Iron ore is 1.7 per cent lower at US$108.40 a tonne.
Iron ore futures are pointing to a 0.9 per cent fall.
One Australian dollar is buying 66.52 US cents.
