Aussie shares are steady at midday, gains in resource stocks like the big miners BHP and Rio Tinto gave the market a lift however gains were capped as investors held back, cautious ahead of the company earnings reporting period.
The S&P/ASX200 index is up 2 points at 4,052 and on the futures market the SPI 200’s up 12 points.
In economic news: The ABS reports that sales of new motor vehicles rose 5.7 per cent in June from the month before.
To business news at midday: Infrastructure company Leighton Holdings Ltd (ASX:LEI) says its subsidiary Leighton Asia in joint venture with Leonhard Nilsen & Sonner AS has been awarded a $410 million major sewage tunnelling system project in Hong Kong. The contract is with the Hong Kong Drainage Services Department and work is to begin in August this year with scheduled completion in October 2013. Leighton also says it has successfully completed the issue of $230 million in five-year fixed medium term notes, the proceeds of which will be used to replace existing bank debt facilities. Leighton Holdings shares fell 0.04 per cent to $25.28.
Retailer Harvey Norman Holdings Ltd (ASX:HVN) says sales increased 3.8 per cent for the year to June 30 2009. Sales from the franchised Harvey Norman stores, commercial divisions and other sales outlets in Australia, New Zealand, Slovenia and Ireland, excluding Singapore, totalled $6.03 billion for the 12 months to June 30, compared to $5.81 billion the year before. For the fourth quarter to June 30 sales increased 4.5 per cent to $1.49 billion. In Australia sales increased 6.7 per cent for the fourth quarter. Harvey Norman says given the current macroeconomic conditions, retail margins continue to be under pressure. Harvey Norman shares tumbled 7.2 per cent to $3.22.
Turning now to market indices: The best performing sector at midday is the Consumer Discretionary index up 7 points to 1,351. Shares in Sky City Entertainment Group up 8.7 per cent at $2.50. Shares in Oroton Group and West Australian Newspapers Holdings are also stronger at noon.
One of the worst performing sectors at midday is the Telco Services index down 12 to 1,173. Shares in IINet down 1.19 per cent to $1.66. Shares in Telstra and Singapore Telecommunications are also lower at noon. Looking to New Zealand and the NZSX50 is 41 points higher.
Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock up 0.73 per cent at $2.75, followed by Sky City, Fletcher Building, South Canterbury Finance and Vector.
To gold and the dollar: Gold is currently trading at $949.20 US an ounce and the Aussie dollar is trading at 81.32 US cents.
