Following a negative lead from Wall St overnight the local share market is lower at midday with resource stocks leading the declines on weaker oil and metals prices. Falls in the top banks are also dragging on the market following ANZ’s earnings drop and cautious outlook.
The S&P/ASX200 index is 88 points lower at 4,597 and on the futures market the SPI 200’s down 91 points.
In economic news: According to the latest Housing Industry Association survey of Australia’s largest builders, new home sales fell by 4.5 per cent in September.
Making headlines at midday: AGL Energy Ltd (ASX:AGK) has forecast underlying net profit after tax for fiscal 2010 of between $390 million and $420 million. Managing director Michael Fraser says the company has made a solid start to the year despite warm winters in key markets. Mr Fraser says there has been a modest growth in customer numbers and electricity hedge books continue to perform well. Sales volumes across all markets have been impacted by very warm July/September, resulting in an impact of between $5 million and $10 million. AGL Energy shares lost 0.79 per cent to $13.82.
Gold miner Lihir Gold Ltd (ASX:LGL) says it’s on track to achieve its full year production guidance after reporting its third quarter production results and lifting reserves by 36 per cent at Lihir Island. Lihir says it achieved total production of 233,000 ounces in the third quarter, taking output for the first nine months of the year to 845,000 ounces and leaving the group on track to achieve record full year production of more than 1 million ounces. The company says strong production, rising cashflows, a solid financial position and positive outlook for the future have enabled Lihir to commence payment of dividends to shareholders. Lihir Gold shares fell 2.61 per cent to $2.98.
Turning now to market indices: The best performing sector at midday is the Health Care index which is up 93 points to 8,514. Shares in Aevum advanced 3.79% to $1.505. Shares in CSL and Healthscope are also higher.
The worst performing sector at midday is the Materials index, down 363 points at 11,083. Shares in Centamin Egypt lost 7.79% to $2.13. Shares in Andean Resources and Bannerman Resources are also lower.
Looking to New Zealand and the NZSX50 is 22 points lower. Turning to the top 5 stocks by turnover on the NZSX50: at the top is Telecom of New Zealand with stock up 0.39 per cent at $2.56, followed by Westpac, Fisher & Paykel Healthcare, Goodman Fielder and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,031. 10 an ounce and the Aussie dollar is trading at 89.62 US cents.
