The local share market is lower at midday following declines in U.S. stocks overnight and a fall in commodities. High-end retailer David Jones fell after providing a cautious outlook for slower growth this financial year.
The S&P/ASX200 index is down 13 points at 4,721 and on the futures market the SPI 200’s down 18 points.
In economic news: The Housing Industry Association reports an 11.4 per cent increase in new home sales in August as first home buyers flooded the market to take advantage of the government’s $21,000 first home buyer grant boost. The boost to the grant ends at the end of this month.
Making headlines at midday: Manufacturer and supplier of building products CSR Ltd (ASX:CSR) says its plans to demerge its sugar and renewable energy business from its building products business remains on track. The company says if the demerger proceeds CSR will continue as a focused residential and commercial building products company with an attractive investment in aluminium. CSR’s sugar and renewable energy business will be launched with a refreshed corporate identity but will retain its CSR sugar brand in Australia. CSR also says there will be some management changes if the demerger proceeds. CSR shares fell 1.28 per cent to $1.925.
Insurer Suncorp-Metway Ltd (ASX:SUN) says it is in exclusive discussions with LJ Hooker regarding the potential sale of its real estate division Hooker Corporation. Suncorp says the discussions are incomplete and there is no certainty a transaction will eventuate. Shares in Suncorp-Metway gained 1.58 per cent to $8.38.
Turning now to market indices: The best performing sector at midday is the Financials excluding Real Estate Investment Trust index up 21 points to 5,590. Shares in Westpac advanced 0.99 per cent to $25.55. Shares in QBE and the Commonwealth Bank are also higher at noon.
The worst performing sector at midday is the Consumer Discretionary index, down 19 points at 1,587. Shares in David Jones lost 3.71 per cent to $5.45. Shares in Fairfax Media and News Corp are also lower.
Looking to New Zealand and the NZSX50 is down 5 points. Taking a look at the top five stocks by turnover on the NZSX50: Telecom of New Zealand heads the list stock up 0.77 per cent at $2.63, followed by Fletcher Building, Guinness Peat, Sky City and Fisher & Paykel Appliances.
To gold and the dollar: Gold is trading at $1010.80 US an ounce and the Aussie dollar is trading at 86.99 US cents.
