The local share market is steady at midday after a string of positive earnings results this morning. Gains in the top banks like Westpac and NAB offset declines in resource stocks on weaker copper prices.
The S&P/ASX200 index is down a point at 4,303 and on the futures market the SPI 200’s up 4 points.
In economic news: The NAB monthly business survey showed business confidence rose 6 points to a read of 10 index points in July. And business conditions up 3 points to 1 index point.
To business news at midday: Gold miner Sino Gold Mining Ltd (ASX:SGX) has suspended its White Mountain operations in China after angry farmers blocked road access to the mine. The mine’s main access road has been blocked by a group of farmers who are seeking compensation on the basis that water discharged from the underground mine is causing them concern. Sino Gold says it is working with Chinese authorities to resolve the situation and is optimistic that full gold production will resume shortly. Sino Gold Mining shares rose 2.14 per cent to $5.74.
Beef cattle company Australian Agricultural Company Ltd (ASX:AAC) has posted a $30 million loss for the six months to June 30, compared to a $2 million loss for the same period last year. The company says the result was due to a number of factors severe draught and flooding, delays in the sale of cattle due to poor prices, lower natural increases of claves born during the period, loss of revenue from properties sold, and one-off costs related to flood damage. Chairman Stephen Lonie says the outlook for the second half is for better business conditions and improvement in financial performance. Australian Agricultural Company shares gained 0.7 per cent to $1.445.
Turning now to market indices: The best performing sector at midday is the Telco Services index up 12 points to 1,243. Shares in Telstra up 1.4 per cent at $3.63. Shares in Singtel and IINet are also stronger at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 9 points at 811. Shares in Westfield Group down 3.66 per cent to $12.36. Shares in Astro Japan Property Trust, formerly Babcock & Brown Japan Property Trust, and ING Office Fund are also lower at noon.
Looking to New Zealand and the NZSX50 is 21 points lower. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock down 1.82 per cent at $2.70, followed by Telstra, Fletcher Building, AMP and ANZ.
To gold and the dollar: Gold is currently trading at $947.30 US an ounce and the Aussie dollar is trading at 83.74 US cents.
