The local share market has followed Wall St into the red with stocks lower at midday. Falls in top miner BHP and the major banks like the Commonwealth Bank leading the declines.
However at a Senate hearing on the Government’s stimulus measures Reserve Bank Governor Glenn Stevens said Australia’s medium term prospects are looking good. He also signaled a possible rise in interest rates.
The S&P/ASX200 index is down 61 points at 4,653 and on the futures market the SPI 200’s down 64 points.
Making headlines at midday: Retail and residential property company Lend Lease Corporation Ltd (ASX:LLC) says it has entered into a scheme implementation agreement with Lend Lease Primelife Group (ASX:LLP) under which Lend Lease will acquire all the securities it does not already own in Primelife for 31 cents a share. Lend Lease currently holds a 43.2 per cent stake in lend Lease Primelife Group. The transaction will implemented via a scheme of arrangement and trust scheme. The independent directors of Primelife have also announced that they intend to unanimously recommend that security holders vote in favour the schemes in the absence of a superior proposal and subject to an independent review. Shares in Lend Lease Corporation fell 2.97 per cent to $10.44.
Global mining products and services provider Industrea Ltd (ASX:IDL) says it’s Hunter Valley operations are set to reach $40 million per annum with new Rio Tinto Ltd (ASX:RIO) contract wins. The company says its subsidiary Huddy’s Mining Services has signed two additional agreements with Wakworth Mining for the hire, service and support of further equipment for its Mt Thorley mine in the Hunter Valley, New South Wales. CEO Robin Levison says these latest agreements lift the overall revenue from its fleet utilized at Rio Tinto’s Mount Thorley Wakworth mine to approximately $3 million to $3.5 million a month once all equipment is mobilized. Mr Levison says with a defined term of 24 months, theses latest agreements provide assurance on the returns from its investment in this new equipment. Shares in Industrea down 1.14 per cent at 43.5 cents.
Turning now to market indices: All sectors are in the red at midday, however the sector with the smallest loss is the Utilities index which is down 11 points to 4,162. Shares in Envestra advanced 1.82 per cent to $0.56. Shares in Energy Developments and Duet Group are also higher at noon.
The worst performing sector at midday is the Materials index, down 225 points at 11,102. Shares in Troy Resources lost 8.79 per cent to $2.18. Shares in Bannerman Resources and Medusa Mining are also lower.
Looking to New Zealand and the NZSX50 is up 14 points. Taking a look at the top five stocks by turnover on the NZSX50: Telecom of New Zealand heads the list stock up 0.38 at $2.63, followed by; Fletcher Building, Fisher & Paykel Appliances, Sky City and Kiwi Income Property Trust.
To gold and the dollar: Gold is trading at $991.50 US an ounce and the Aussie dollar is trading at 86.09 US cents.
