Aussie shares are lower at midday after US stocks closed in the red at the end of last week on disappointing earnings results from industrial companies. Locally declines in the top banks ahead of earnings due out this week are weighing on the market.
The S&P/ASX200 index is 31 points lower at 4,828 and on the futures market the SPI 200’s down 22 points.
In economic news, the ABS reports that Australia’s producer price index in the final stage of production increased 0.1 per cent in the September quarter, for an annual rise of 0.2 per cent.
Making headlines at midday: The Australian Government has approved China’s Yanzhou Coal Mining Company’s $2.9 billion takeover bid for coal miner Felix Resources Ltd (ASX:FLX). Assistant Treasurer, Senator Nick Sherry has approved the application by Yanzhou to acquire full ownership of Felix, conditional upon it complying with certain undertakings including that it operate its Australian mines through a company, Yancoal Australia Proprietary, that is headquartered in Australia and that the CEO and CFO of the company have their principal place of residence in Australia. Yanzhou says that its condition in relation to the Foreign Investment Review Board’s approval has been satisfied and it continues to progress Chinese regulatory consents. Felix Resources shares gained 3.94 per cent to $17.41.
Australand Property Group (ASX:ALZ) has reaffirmed previous guidance for operating profit after tax, excluding abnormal items, to be approximately $120 million for 2009. The group reported operating profit, excluding abnormal items, of $174.8 million for 2008. Australand says it expects to pay a further distribution of 2 cents per stapled security for the second half, resulting in a full year distribution of 5 cents for the year to December 31 2009. Shares in Australand Property Group are steady at $0.55 cents.
Turning now to market indices: Majority of sectors are in the red at midday, however one of the only sectors in positive territory is the Telco Services index which is up 3 points to 1,105. Shares in BigAir Group advanced 7.14% to $0.15. Shares in Reverse Corp and Pipe Networks are also higher.
The sector with the biggest loss at midday is the Consumer Discretionary index, down 20 points at 1,635. Shares in Specialty Fashion Group lost 4.88% to $1.17. Shares in Billabong International and Super Cheap Auto Group were also lower.
Looking to New Zealand and the NZSX50 is closed today for the Labour Day public holiday. To gold and the dollar: Gold is trading at US$1,054.25 an ounce and the Aussie dollar is trading at 92.29 US cents.
