Despite earlier gains the local share market is flat at midday, global economic concerns weighing bank stocks down and overshadowing gains in gold miners like Sino Gold Mining and Lihir Gold after on the back of stronger gold prices.
The S&P/ASX200 index is down 5 points at 4,433 and on the futures market the SPI 200’s down 7 points.
In economic news: The ABS has released data on Australia’s balance of goods and services showing that for July Australia had a trade deficit of $1.556 billion. Forecasts were for a deficit of $850 million.
To business news at midday: Iron ore miner Murchison Metals Ltd (ASX:MMX) says it is targeting an additional 400 million to 1 billion tonnes of primarily beneficiation feed, with a component of direct shipping material, at its Jack Hills iron ore project. Ongoing exploration at the prospect has revealed the potential, which Murchison says is if fully realised will lift the project size to between 1.5 to 2.1 billion tonnes. Murchison says the results mean the Jack Hills mine has the potential to be a large scale, multi-decade project yielding substantial cash flow and economic value. Shares in Murchison Metals rose 9.22 per cent to $1.955.
Pharmaceutical company Peplin Inc (ASX:PLI) has announced that it is to taken over by privately-held global dermatology and critical care pharmaceutical company LEO Pharma A/S. LEO is to acquire all the outstanding shares in Peplin for US$287.5 million in cash. In addition LEO will provide Peplin with access to a loan facility to fund ongoing operations until the transaction closes, which is expected to occur by the end of the calendar year. The transaction is subject to approval by Peplin shareholders. Shares in Peplin soared 54.17 per cent to $0.925.
Turning now to market indices: The best performing sector at midday is the Consumer Discretionary index up 13 points to 1,487. Shares in Ten Network Holdings up 5.74 per cent at $1.29. Shares in Austar United Communications and APN News & Media are also stronger at noon.
The worst performing sector at midday is the Real Estate Investment Trust index, down 9 points at 851. Shares in Stockland down 1.64 per cent to $3.59. Shares in CFS Retail Property Trust and Westfield Group are also lower.
Looking to New Zealand and the NZSX50 is 11 points higher. Taking a look at the top five stocks by value on the NZSX50: Telstra is the top mover by turnover, its stock is steady at $4, followed by Fletcher Building, Telecom of New Zealand, New Image Group and Auckland Airport.
To gold and the dollar: Gold is currently trading at $976.25 US an ounce and the Aussie dollar is trading at 83.36 US cents.
