Following losses on Wall St overnight he local share market is lower at midday weighed down by the financials and resource stocks on speculation that economic data out of China may point to a slowdown in demand.
The S&P/ASX200 index is 59 points lower at 4,691 and on the futures market the SPI 200’s down 57 points.
In company news: Cloud Peak Energy, a subsidiary of mining giant Rio Tinto Ltd (ASX:RIO) has priced its shares in its initial public offering at US$15, below expectations for shares to be offered between US$16 and US$18. Cloud Peak Energy is the third largest coal producer in the US and will trade on the New York Stock Exchange under the symbol CLD. Proceeds from the IPO, expected to be about US$459 million, are to be used to buy just over half of Rio’s assets that it operates with Rio to retain the rest. Shares in Rio Tinto fell 1.89 per cent at $71.23.
Radio and media company Macquarie Radio Network Ltd (ASX:MRN), owner of 2GB and 2CH, says its performance to date in the current financial year is significantly better than its disappointing performance in 2008/2009. Chairman Russell Tate says the company’s core radio revenue for the four months to October 31 is 6% higher than last year and 16% higher than the rest of the Sydney radio market. Mr Tate says year on year revenue growth is flowing through to earnings with overall earnings before interest, tax, depreciation and amortization up 5.5% for the 4 months compared to the same period last year. The company says it is confident of achieving in excess of $4.5 million earnings before interest, tax, depreciation and amortization for the December half and in excess of $8.5 million for the full year. Shares in Macquarie Radio Network gained 14.55 per cent to $0.63.
Turning now to market indices: All sectors are in the red at midday, however the Telco Services index is down just a 1 point to 1,135. Shares in Pipe Networks advanced 0.34% to $5.89. Shares in SP Telemedia are also higher while shares in Telstra are flat.
The worst performing sector at midday is the Financials Excluding Real Estate Investment Trust index, down 91 points to 5,403. Shares in Insurance Australia Group fell 6.18% to $3.95. Shares in Tower Australia and ANZ are also lower at noon.
Looking to New Zealand and the NZSX50 is 27 points lower. Looking at the top 5 stocks by turnover on the NZSX50: Heading the list is Telecom of New Zealand with stock down 0.39% at $2.56 followed by; Fletcher Building, ANZ, Telstra and Pyne Gould Corp.
To gold and the dollar: Gold is trading at US$1,144.20 an ounce and the Aussie dollar is trading at 92.12 US cents.
