Following a negative lead from Wall St at the end of last week, the local share market is lower at midday, investors cautious ahead of a string of company earnings results to be reported this week. Top miners BHP and Rio Tinto led the declines on a fall in metal prices.
The S&P/ASX200 index is down 37 points at 4,424 and on the futures market the SPI 200’s down 34 points.
To business news at midday: Gold and copper miner Newcrest Mining Ltd (ASX:NCM) has reported an 85 per cent jump in full year net profit to $248.1 million as a result of higher gold prices and cost cutting. The company says gold production in the 2010 financial year is expected to increase from 1.63 million ounces in 2009 to between 1.81 and 1.91 million ounces. Sales revenue rose 7 per cent to $2.53 billion thanks to a 28 per cent increase in the realized gold price and an 11 per cent increase in copper sales volumes. Newcrest Mining declared a final dividend of 15 cents. Newcrest Mining shares rose 1.78 per cent to $29.67.
Iron ore miner Fortescue Metals Group Ltd (ASX:FMG) has agreed to a 35 per cent iron ore price reduction with China’s Baosteel Group and China Iron and Steel Association. The agreed price is US$0.94 cents a dry metric tonne unit for Fortescue’s Rocket Fines, and US$1 a dry metric tonne unit for high grade lump. The agreement is for the period of July 1 to December 31 2009, and commits Chinese steel mills to acquire approximately 20 million metric wet tonnes from Fortescue. Fortescue Metals Group shares rose 4.49 per cent to $4.65.
Turning now to market indices: The best performing sector at midday is the Healthcare index up 51 points to 8,542. Shares in ResMed up 2.93 per cent at $5.62. Shares in Ramsay Health Care and Ansell are also stronger at noon.
The worst performing sector at midday is the Financials excluding Real Estate Investment Trust index, down 94 points at 5,073. Shares in AXA Asia Pacific Holdings down 4.38 per cent to $4.37. Shares in AMP and the Commonwealth Bank are also lower at noon.
Looking to New Zealand and the NZSX50 is 42 points lower. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand heads the list, stock down 1.45 per cent at $2.71, followed by Fletcher Building, South Canterbury Finance, Auckland Airport and Guinness Peat.
To gold and the dollar: Gold is currently trading at $943.50 US an ounce and the Aussie dollar is trading at 82.35 US cents.
