Following a negative lead from Wall St overnight the local share market is lower at midday, led down by miners like Rio Tinto and Fortescue Metals Group on weaker commodity prices.
The S&P/ASX200 index is 35 points lower at 3,732 and on the futures market the SPI 200’s down 46 points.
In economic news: The Westpac/Melbourne Institute Survey of Consumer Sentiment rose 9.3 per cent in July to a read of 109.4. And the ABS reports that housing finance rose 2.2 per cent in May from the month before.
To business news at midday: Global miner Rio Tinto Ltd (ASX:RIO) says four of the company's employees have been detained by Chinese authorities in Shanghai. The Sydney Morning Herald reports Rio saying that it is unclear why the employees have been detained. It is believed that the Australian government is demanding Beijing grant urgent consular access. Rio is currently locked in tense negotiations over iron ore prices with China who has so far refused to accept the 33 per cent price cut that has been reached with customers form Japan and Korea. Rio Tinto shares fell 1.06 per cent to $46.85.
Natural gas distributor Envestra Ltd (ASX:ENV) says it has agreed to a three year $280 million facility with a syndicate of five banks. In addition the company says it has reached an agreement with ANZ to convert an undrawn, one year, $50 million working capital facility, to a three year $75 million term facility. Managing director Ian Little say’s the $280 million syndication and the $75 million ANZ facility, together with the group’s unused credit facilities of $186 million are more than sufficient to repay the debt maturing in the second-half of 2009 and to support the Group’s capital expenditure requirements. Envestra shares declined 2.17 per cent to 45 cents.
Turning now to market indices: the only sector in positive territory at midday is the Telco Services index up 18 points to 1,167. Shares in Telstra are up 1.81 per cent at $3.38. Shares in IINet and Singapore Telecommunications are also higher at noon.
The worst performing sector at midday is the Energy index down 307 points to 13,374. Shares in Straits Resources are down 6.76 per cent to $1.93. Shares in WorleyParsons and Aquila Resources are also lower at noon.
Looking to New Zealand and the NZSX50 is 19 points lower. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand tops the list, stock down 1.11 per cent at $2.67, followed by Goodman Fielder, Westpac, Fletcher Building and South Canterbury Finance.
To gold and the dollar: Gold is currently trading at $925.10 US an ounce and the Aussie dollar is trading at 78.6 US cents.
