Following a mixed lead from Wall St overnight, Aussie shares are lower at midday, with weakness in financial stocks limiting gains after major bank NAB posted a fall in earnings and gave a cautious outlook.
The S&P/ASX200 index is 18 points lower at 4,736 and on the futures market the SPI 200’s down 27 points.
In economic news: Figures released by the ABS today show a 1% rise in the consumer price index in the September quarter.
The Department of Employment and Workplace Relations reports that Australia’s index of skilled job vacancies rose 1.2 per cent in October.
Making headlines at midday: Oil and gas company Origin Energy Ltd (ASX:ORG) has reported a 25 per cent decline in production for the September quarter compared to the same period a year ago. The company says the drop is due to the dilution of 50 per cent of its coal seam gas assets following the Australia Pacific LNG transaction last October. Origin produced 25.4 petajoules equivalent in the September quarter, while revenue for the period fell 26 per cent to $146.2 million. Origin says sales volumes of 28.1 petajoules equivalent were 20 per cent lower than the 35.2 petajoules equivalent recorded in the September quarter of 2008 reflecting the lower production. Origin Energy shares fell 0.19 per cent to $15.89.
Building and construction materials supplier Boral Ltd (ASX:BLD) says the future for the company looks bright, however the 2010 financial year will be another tough year. CEO Rod Pearse says market conditions experienced in the second half of financial year 2009 are broadly continuing through the first half of this year. Mr Pearse says that while September quarter earnings were above the company’s expectations, market conditions remain uncertain and it is too early to project earnings outcomes for fiscal year 2010. Boral shares lost 4.92 per cent to $5.80.
Turning now to market indices: The best performing sector at midday is the Telco Services index which is up 21 points to 1,138. Shares in Telecom of New Zealand advanced 2.97% to $2.08. Shares in PIPE Networks and Telstra are also higher.
The worst performing sector at midday is the Materials index, down 85 points at 11,517. Shares in Moly Mines lost 6.25% to $1.05. Shares in Sims Metal Management and Mirabela Nickel are also lower.
Looking to New Zealand and the NZSX50 is 15 points higher.
Turning to the top 5 stocks by turnover on the NZSX50: at the top of the list is Telecom of New Zealand, stock up 2.41 per cent at $2.55. Following the Telco is Westpac, Fletcher Building, Telstra and Fisher & Paykel Healthcare.
To gold and the dollar: Gold is trading at US$1,040. 50 an ounce and the Aussie dollar is trading at 91.5 US cents.
