Following the U.S. into the red the local share market is lower at midday with the materials sector the biggest drag on the market a fall in commodities prices weighing on resource stocks like top miner BHP.
The S&P/ASX200 index is down 38 points at 4,664 and on the futures market the SPI 200’s down 52 points.
Making headlines at midday: Australia and New Zealand Banking Group Ltd (ASX:ANZ) has agreed to buy ING Group’s 51 per cent stake in the two company’s wealth management and life insurance joint ventures in Australia and New Zealand for $1.76 billion. ANZ says it will fund the acquisition from its internal capital, with the transaction expected to be cash earnings per share accretive in fiscal 2010 pre-synergy benefits. CEO Mike Smith says moving to full ownership of the wealth management and life insurance joint ventures significantly strengthens the company’s position in wealth management with a business ANZ knows well. ANZ says it has also agreed to purchase ING Group’s interests in the ING Diversified Yield Fund and Regular Income Fund in New Zealand for $55 million. ANZ shares fell 0.43 per cent to $23.39.
Brewer Lion Nathan Ltd (ASX:LNN) has announced that it is intended that Andrew Reeves, executive director of Lion Nathan and managing director of Lion Nathan Australia, will be appointed managing director of National Foods. The proposal is subject to approval from the board of Kirin Holdings and the Federal Court of Australia approving the scheme of arrangement for Kirin to acquire all the remaining shares I t does not already own in Lion. Current CEO and managing director of National Foods Ashley Waugh has given notice of his intention to resign at the end of October. James Brindley, currently commercial director of Lion Nathan Australia will move into the position of managing director of Lion Nathan Australia. Shares in Lion Nathan rose 0.09 per cent to $11.44.
Turning now to market indices: Majority of sectors are in the red at midday, however the best performing sector is the Telco Services index which is steady at to 1,124. Shares in SP Telemedia advanced 2.68 per cent to $1.15. Shares in Pipe Networks and Reverse Corp are also higher at noon.
The worst performing sector at midday is the Materials index, down 227 points at 11,203. Shares in Arafura Resources lost 7.79 per cent to $1.065. Shares in Extract Resources and Cudeco are also lower.
Looking to New Zealand and the NZSX50 is down 16 points. Taking a look at the top five stocks by turnover on the NZSX50: topping the list is Fisher & Paykel Appliances with stock down 9.46 per cent at 67 cents, followed by Fletcher Building, Telecom of New Zealand, South Canterbury Finance, and Westpac.
To gold and the dollar: Gold is trading at $996.45 US an ounce and the Aussie dollar is trading at 86.36 US cents.
