Aussie shares are lower at midday, as investors take profits after two strong sessions of gains. A fall in the price of oil putting the pressure on energy companies like Woodside Petroleum.
The S&P/ASX200 index is down 40 points at 4,675 and on the futures market the SPI 200’s down 41 points.
Making headlines at midday: Mineral exploration and resource development company Arafura Resources Ltd (ASX:ARU) says shareholders have unanimously voted in overwhelming support of the Chinese group East China Mineral Exploration & Development Bureau’s investment of almost $23 million for a 25 per cent stake in the company. Chairman Ian Laurance says shareholder endorsement of Arafura’s alliance with the major Chinese metals and mining company, will strengthen Arafura’s cash position and enables it to progress its bankable feasibility study for the Nolans Rare Earths Project in Australia’s Northern Territory. The company’s CEO Alistair Stephens also announced his decision to resign his position in early 2010. Shares in Arafura Resources fell 7.98 per cent to $1.09.
Liquefied Natural Gas Ltd (ASX:LNG) largest shareholder Golar LNG Energy Ltd has signed a heads of agreement with Toyota Tsusho Corporation of Japan as the LNG end buyer for the first 1.5 million tonnes per annum of LNG produced by the company’s Gladstone LNG Project. The agreement is for a 12 year period from 2014. LNG says the parties will also discuss Toyota Tsusho’s potential acquisition of a minority equity interest in the Gladestone LNG Fisherman’s Landing project. Shares in LNG rose 0.82 per cent to $1.845.
Turning now to market indices: All sectors are in the red at midday, however the sector with the smallest loss is the Utilities index down 4 points to 4,141. Shares in Geodynamics up 2.22 per cent at $0.92. Shares in Challenger Infrastructure Fund and AGL Energy are also higher at noon.
The sector with the biggest loss at midday is the Materials index, down 177 points at 11,631. Shares in Arafura Resources price as mentioned before. Shares in Extract Resources and Centamin Egypt are also lower.
Looking to New Zealand and the NZSX50 is down 4 points. Taking a look at the top five stocks by value on the NZSX50: Telecom of New Zealand is top of the list, stock down 2.19 per cent at $2.68. Followed by Fletcher Building, Fisher & Paykel Healthcare, Fisher & Paykel Appliances and Guinness Peat.
To gold and the dollar: Gold is trading at $1012.10 US an ounce and the Aussie dollar is trading at 86.88 US cents.
