The local share market is lower at midday, miners like top miner BHP leading the declines on a fall in base metal prices and ABB Grain also took a tumble after downgrading its full year earnings guidance.
The S&P/ASX200 index is 21 points lower at 3,763 and on the futures market the SPI 200’s down 17 points.
In economic news: The Australian Industry Group/Housing Industry Association’s Performance of Construction Index fell 4.3 points in June to a read of 42.6 after rising 10.4 points in May. A read below 50 indicates contraction.
To business news at midday: Engineering and construction company Clough Ltd (ASX:CLO) says it has completed the sale of its 81.95 per cent stake in Indonesian construction company PT Petrosea Tbk to another Indonesian company PT Indika Energy Tbk for US$83.8 million. CEO John Smith says the company is pleased that the transaction has completed and that there were no adjustments in sale price coming out of Indika’s rigorous due diligence review. Clough says as part of the completion of the transaction it will enter into an ageenment with Indika Energy subsidiary, PT Tripatra Engineers and Constructors, to collaborate on future offshore oil and gas projects in Indonesia. Clough shares fell 0.7 per cent to 70.5 cents.
Property group Lend Lease Corporation Ltd (ASX:LLC) has begun work on the $500 million Darling Walk in Darling Harbour. According to a report in the Australian, chief operating officer for Asia Pacific, David Hutton says the enhanced public domain will include interactive water features, a nature playground and kiosks with a purpose-designed landscape park. Mr Hutton says on completion of the office development in 2011, Darling Walk is expected to be worth around $500 million. The Australian says investors in a property fund managed by Lend Lease, and an institutional investor are to fund and own the development. Shares in Lend Lease dropped 1.71 per cent to $6.88.
Turning now to market indices: the best performing sector at midday is the Utilities index up 76 points to 3,917. Shares in AGL Energy are up 3.19 per cent at $13.57. Shares in Duet Group and Transfield Infrastructure Fund are also higher at noon.
The worst performing sector at midday is the Real Estate Investment Trust index down 15 points to 722. Shares in Stockland are down 2.88 per cent to $3.04. Shares in Westfield Group and Mirvac Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 4 points higher. Taking a look at the top five stocks by value on the NZSX50: Fletcher Building heads the list, stock down 0.62 per cent at $6.43, followed by Telecom of New Zealand, South Canterbury Finance, Fisher & Paykel Healthcare, and Auckland Airport.
To gold and the dollar: Gold is currently trading at $924.20 US an ounce and the Aussie dollar is trading at 79.54 US cents.
