The local share market is lower at midday with declines in financials like major banks Westpac and NAB overshadowing gains in resource stocks on stronger metals, gold and oil prices.
The S&P/ASX200 index is 11 points lower at 4,711 and on the futures market the SPI 200’s down 15 points.
In economic news: According to the ABS Australian capital expenditure fell 3.9% in the third quarter compared to the previous quarter. Forecasts were for a rise of 1%.
In company news: Building products and sugar business CSR Ltd (ASX:CSR) has sold a shortfall of new shares that were not taken up in its $375 million capital raising, at a 2.5% discount to its last traded price. The company offered retail and institutional investors 7 new shares for every 40 shares held in an entitlement offer in October. A shortfall of 47.5 million new shares were sold in a bookbuild at a price of $1.75 a share. Proceeds are to be used to pay down debt before the company demerges its sugar business. CSR shares fell 1.95 per cent to $1.76.
Regional lender Bank of Queensland Ltd (ASX:BOQ) says Director Peter Fox has decided to retire from the bank’s board effective from November 25. Mr Fox who is also Executive Chairman of Fox Group Holdings, the culmination of an extensive career within the Linfox Group, says he is retiring from the board so he can concentrate on the strategic expansion of the Linfox Group. Mr Fox says he and the Linfox Group have every confidence in the management team at Bank of Queensland and will continue to be supporters of the banks brand. Shares in Bank of Queensland dropped 1.17 per cent to $10.97.
Turning now to market indices: The best performing sector at midday is the Telco Services index up 8 points to 1,161. Shares in SP Telemedia advanced 3.57% to $1.74. Shares in IINet and Telstra are also higher.
The worst performing sector at midday is the Financials excluding Real Estate Investment Trust index, down 58 points to 5,380. Shares in Tower Australia Group fell 7.62% to $3.03. Shares in QBE Insurance and Suncorp-Metway are also lower at noon.
Looking to New Zealand and the NZSX50 is 10 points higher. Looking at the top 5 stocks by turnover on the NZSX50: Telecom of New Zealand heads the list - stock down 0.82% at $2.42. South Canterbury Finance follows the Telco, then Westpac, Fletcher Building and Cavotec MSL Holdings.
To gold and the dollar: Gold is trading at US$1,190.15 an ounce and the Aussie dollar is trading at 92.79 US cents.
