Resurgent resource shares and company results dominate the Australian share market at the mid-session point. High growth stocks remain under pressure, as investors trim positions in former market darlings. Volumes are elevated in both cash and futures markets ahead of important market risk events.
Overnight support for metals and oil markets sees the materials sector leading the market, closely followed by energy. However, most sectors are in the red as “top down” selling of index futures batters share prices. Traders speculate that the pressure is coming from international institutional investors ahead of the RBA meeting next week and the US election that follows.
Woolworths shares are holding modest gains after soaring in initial trading, following the release of Q1 sales data. There is a clear turnaround for the supermarket chain, but growth in sales remains mired around 1%. AMP shares are down more than 8% and the worst performer in the top 200. Investors are fleeing after the CEO announced a $668 million impairment alongside weak insurance numbers. In contrast Macquarie Group shares are up solidly after the investment bank told the market earnings remain consistent with the previous year, and announced a dividend higher than forecast.