Aussie shares are lower at midday, dragged down by mining heavy weights like BHP, who today announced the sale of its Ravensthorpe mine to Canada’s First Quantum Minerals, and the banks on a fresh wave of concern for Dubai’s debt problems. Falls in copper, gold and oil prices are weighing on resource stocks in trade today.
The S&P/ASX200 index is 57 points lower at 4,613 and on the futures market the SPI 200’s down 55 points.
In economic news: ABS figures show a 1.4% drop in housing finance in October.
The Bureau also says Australia’s balance of goods and services for October showed a deficit of $2.379 billion.
In company news: Industrial brands business Alesco Corporation Ltd (ASX:ALS) says based on preliminary unaudited management accounts, its 2010 half year earnings before interest, tax, amortization and significant items is expected to be around $30 million. This represents a 29% drop from the same six month period last year. Alesco says this excludes the contribution from the Scientific & Medical division which was sold on April 30 2009. Revenue from continuing businesses for the first half of fiscal 2010 is down 15% compared to last year. CEO Justin Ryan says sales are well down on the same period last year as the Australian and New Zealand housing and construction markets continue to soften. Alesco shares fell 9.15% per cent to $4.47.
Goodman Group (ASX:GMG) and Goodman Group Hong Kong Logistics through their Goodman Interlink Ltd joint venture, are to build a $430 million, 24 storey warehouse and distribution centre in the heart of the Hong Kong ports district. Construction is expected to commence this month with completion scheduled for January 2012. Goodman Group the project should deliver a forecast yield on cost of 9% and says two multi-national third party logistics operators have already pre-leased 50% of the floor space. Shares in Goodman Group gained 0.9 per cent to $0.56.
Turning now to market indices: Majority of sectors are in the red at midday, however the Real Estate Investment Trust index is one of the only sectors not in the red which is up a point at 848. Shares in Westfield Group advanced 1.27% to $11.95. Shares in Astro Japan Property Trust and Macquarie CountryWide Trust are also higher.
The worst performing sector at midday is the Materials index, down 216 points to 12,001. Shares in Minerals Deposits fell 7.83% to $1. Shares in Avoca Resources and Perseus Mining are also lower at noon.
Looking to New Zealand and the NZSX50 is 16 points lower. Taking a look now at the top 5 stocks by turnover: Top of the list is Telecom of New Zealand stock down 0.42% at $2.36, followed by; ANZ, Auckland Airport, Fletcher Building and AMP.
To gold and the dollar: Gold is trading at US$1,132 an ounce and the Aussie dollar is trading at 90.45 US cents.
