The Australian share market is lower at midday as investors stepped back after the previous sessions rally. Wesfarmers dropped, weighing on the market after Woolworths revealed plans to enter the hardware sector. Wesfarmers owns Coles and Bunnings.
The S&P/ASX200 index is down 27 points at 4,399 and on the futures market the SPI 200’s down 42 points.
To business news at midday: Property investor Mirvac Group (ASX:MGR) has reported a $1.08 billion loss for the year due to property revaluations, write-downs and a loss on inventory. Operating profit after tax came to $200.8 million down 43 per cent from last year, revenue falling 16 per cent to $1.79 billion. The company’s result was impacted by property revaluations of $487.2 million and impairments on goodwill, management rights and other intangibles of $273.6 million. Managing director Nick Collishaw says after 12 months of hard work, the company believes it has a stronger, simplified and more focused business model that is well placed to capture the opportunities that will arise as the market improves. Mirvac Group shares dropped 1.19 per cent to $1.25.
Oil and gas company Oil Search Ltd (ASX:OSH) has reported a steep fall in earnings for the first half driven lower by weaker oil prices and lower oil sales. Net profit for the six months to June 30 came to US$35.6 million, down from US$133.3 million recorded in the first half of 2008. Managing director Peter Botten says revenue fell from an all-time high of US$466.7 million in the first half of 2008, to US$185.1 million. Sales from oil and gas production declined 12 per cent to 3.81 million barrels of oil equivalent. Oil Search reiterated earlier guidance for full year production to be between 8 to 8.3 million barrels of oil equivalent. Oil Search shares gained 4.31 per cent to $6.05.
Turning now to market indices: The only sector in positive territory at midday, is the Real Estate Investment Trust index up 2 points to 824. Shares in Valad Property Group up 7.69 per cent at $0.14. Shares in Goodman Group and Westfield Group are also stronger at noon.
The worst performing sector at midday is the Health Care index, down 109 points at 8,203. Shares in Cellestis down 3.75 per cent to $3.85. Shares in Ansell and Sonic Healthcare are also lower.
Looking to New Zealand and the NZSX50 is 5 points higher. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand tops the list, stock steady at $2.72, followed by South Canterbury Finance, Tower, Guinness Peat and Fletcher Building.
To gold and the dollar: Gold is currently trading at $945.50 US an ounce and the Aussie dollar is trading at 83.61 US cents.
