Australian shares edging lower at midday

Derek Rose | October 2, 2023

The local share market has been edging lower this morning in quiet trading due to the public holiday in NSW,  Queensland, South Australia and the ACT.

At noon AEST on Monday, the benchmark S&P/ASX200 index was down 7.9 points, or 0.11 per cent, to 7,040.7, while the broader All Ordinaries was down 5.5 points, or 0.08 per cent, to 7,244.2.

In the United States over the weekend, President Joe Biden signed a stopgap funding bill to avert a government shutdown for six weeks.

Official purchasing managers index (PMI) data out of China showed the manufacturing sector returning to expansion in September, along with a pickup in services and construction activity.

Australia’s manufacturing sector meanwhile saw conditions soften last month, according to PMI data from Judo Bank, with a sharper fall in new orders, including from abroad. 

The ASX’s 11 sectors were mixed at midday, with five up and six down.

The energy sector was the biggest mover, dropping 0.7 per cent as Brent crude prices fell to $US92 a barrel. Woodside had dropped 1.2 per cent and Santos was 1.0 per cent lower.

Coronado Global Resources was the biggest loser in the ASX200 at midday, falling 4.6 per cent to $1.855 after the coking coal producer forecast less production following geological issues its Buchanan mine in Virginia and a mechanical failure at its Curragh mine in Queensland.

The heavyweight mining sector was up 0.5 per cent, with BHP 0.6 per cent, Fortescue climbing 0.4 per cent and Rio Tinto adding 0.8 per cent.

The Big Four banks were mostly slightly lower, with ANZ dipping 0.4 per cent, CBA down 0.2 per cent and NAB down 0.1 per cent. Westpac was basically flat at $21.16.

The Australian dollar was buying 64.32 US cents, from 64.67 US cents at Friday’s ASX close.

The Reserve Bank is widely expected to keep rates on hold at its board meeting on Tuesday, but some economists, such as NAB’s, are predicting a hike in November.