Aussie shares are flat at midday as weaker oil and metals prices weigh on resource stocks and overshadow optimism about the US economy after a better than expected jobs report on Friday.
The S&P/ASX200 index is 3 points lower at 4,699 and on the futures market the SPI 200’s down 4 points.
In economic news: According to a survey conducted by ANZ, total job ads rose 5.2% in November after a 1.7% fall in October.
And the Australian Industry Group/Housing Industry Association’s Performance of Construction Index fell 3.3 points to a read of 47.6 in November. The drop in the index taking it below the 50 mark indicating contraction in the sector.
In company news: Babcock & Brown Power (ASX:BBP) says it has reached an agreement with Babcock & Brown International Group to settle $444 million in outstanding debts and fees it owes the group. Babcock & Brown Power will pay between $33 million and $37.7 million in cash and pay all the proceeds from the sales of its interests in the Oakey Power Station. The company will also issue 80.73 million of its shares to Babcock & Brown international Group, and says these arrangements represent around an 80% reduction in the debt and fees outstanding to the group. Babcock & Brown Power shares are in a trading halt and last traded at 7.6 cents.
Telecommunications company SP Telemedia Ltd has officially changed its name to TPG Telecom Ltd (ASX:TPM) after shareholders voted in favour of the change at the company’s annual general meeting on November 25. Following the name change the company’s ASX code has also changed from SOT to TPM. Shares in TPG Telecom fell 0.92 per cent to $1.615.
Turning now to market indices: The best performing sector at midday is the Health Care index which is up 116 points to 8,462. Shares in ChemGenex Pharmaceuticals advanced 5.67% to $1.025. Shares in Acrux and Pharmaxis are also higher.
The worst performing sector at midday is the Materials index, down 178 points to 12,202. Shares in Resolute Mining fell 13.73% to just over a dollar. Shares in Avoca Resources and Independence Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 8 points higher. Taking a look now at the top 5 stocks by turnover: Telecom of New Zealand heads the list stocks down 0.41% at $2.40, followed by; Fletcher Building, Telstra, Auckland Airport and Goodman Fielder.
To gold and the dollar: Gold is trading at US$1,157.60 an ounce and the Aussie dollar is trading at 91.58 US cents.
