Aussie shares are lower at midday, declines in mining stocks like BHP and Rio Tinto on weaker commodity prices weighed on the market.
The S&P/ASX200 index is 48 points lower at 4,782 and on the futures market the SPI 200’s down 57 points.
Making headlines at midday: Real estate investor ING Industrial Fund (ASX:IIF) has announced a $700 million capital raising at an offer price of 48 cents a unit. The proceeds will be used to significantly strengthen the company’s balance sheet, pay down debt and enable the fund to explore future portfolio opportunities to enhance earnings. The company also forecast calendar year 2010 net operating income per unit of 4.17 cents, an 8.7 per cent yield on the offer price of the capital raising, and expects to sustain this it at this level for the financial year 2011. ING Industrial Fund says as a result of the strengthened balance sheet it will reintroduce distribution payments with the next distribution payable for the quarter commencing January 1 2010. ING Industrial Fund shares are in a ntrading halt and last traded at 60 cents.
Commercial chemical and cleaning services company Campbell Brothers Ltd (ASX:CPB) and testing, inspection and asset management company Pearlstreet Ltd (ASX:PST) have agreed to merge. Campbell Brothers is to offer shareholders 75 cents a share for PearlStreet which represents a 142 per cent premium to PearlSteets five day volume weighted average price of 31 cents prior to PearlStreet’s recapitalization announcement. The offer values PearlStreet at around $108.3 million, comprising $63.7 million for equity and $44.6 million for net debt as at June 30 2009. Campbell Brothers managing director Greg Kilmister says the acquisition of PearlStreet will provide Campbell Brothers with an excellent vehicle to grow its presence in the non destructive testing market and will complement its existing portfolio of testing businesses. Campbell Brothers shares rose 2.25 per cent to $28.57, PearlStreet shares skyrocketed 33.94 per cent to 73 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 2 points to 1,105. Shares in SingTel advanced 2.07% to $2.46. Shares in PIPE Networks and Telstra are also higher.
The sector with the biggest loss at midday is the Real Estate Investment Trust index, down 23 points at 900. Shares in Mirvac Group lost 3.75% to $1.54. Shares in CFS Retail Property Trust and Westfield Group are also lower.
Looking to New Zealand and the NZSX50 is 31 points lower. Turning to the top 5 stocks by turnover on the NZSX50, and heading the list is Telecom of New Zealand stock down 1.2 per cent at $2.47, followed by Westpac, Fletcher Building, ANZ, and Sky City.
To gold and the dollar: Gold is trading at US$1,040.75 an ounce and the Aussie dollar is trading at 91.82 US cents.
