Australian stocks are lower at noon, lead down by resources stocks such as BHP Billiton
(ASX:BHP) on weaker commodity prices and concerns over the health of a US recovery.
The S&P/ASX200 index is 19 points lower at 4,827 and on the futures market the SPI 200’s down 10 points.
In economic news: The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months into the future, jumped 1.1% in August to a 1.7% annualised rate in August versus minus 1 in July. The August reading is the first positive one for the index since September 2008.
Making headlines at midday: BHP Billiton (ASX:BHP) says first-quarter iron ore production has increased to a record high, driven by a rebound in global steel demand. The world’s largest mining company says output of iron ore was 30.1 million metric tons in the three months ending September 30, compared with 29.8 million tons a year earlier. In comparison Rio Tinto also achieved record ore output in the same period. Steel companies are resuming output as signs of a global recovery in industrial demand take hold. BHP Billiton shares are 1.08% lower at $39.48.
ASIC has launched legal action against eight directors and executives in the Centro Properties Group (ASX:CNP), claiming their 2007 accounts failed to correctly classify more than $2 billion of debt. The corporate regulator says it’s seeking to have the men disqualified from being able to manage companies, and wants them fined by the courts. Former Centro Chairman Brian Healey and former Chief Executive Officer Andrew Scott as well as Paul Cooper, the group's current chairman - are among the defendants in the case brought against directors of the company by ASIC. Centro Properties Group shares are trading 9.21% lower at $0.345.
Turning now to market indices: The sector with the biggest gain is the Telco index which gained 17 points to 1,102. Shares in Engine advanced 5 % to $0.021. Shares in Telstra were higher, while Reverse Corp shares were flat.
The sector with the biggest loss at midday is the Materials index, down 131 points at 11,878. Shares in Incitec Pivot lost 2.75% to $2.83. Shares in Alumina and BHP Billiton were also lower.
Looking to New Zealand and the NZSX50 is down 27 points.
Taking a look at the top five stocks by turnover on the NZSX50: Topping the list is Telecom New Zealand, stock trading 0.78% weaker at $2.55, followed by Fletcher Building, AMP New Zealand Office Trust, Fisher and Paykel Healthcare and Westpac Banking.
And finally: Gold is trading at US$1,053.90 US an ounce and the Aussie dollar is trading at 92.2US cents.
