Aussie shares are lower at midday following falls on Wall St overnight and a drop in metals prices. The gold miners like Lihir Gold and Newcrest Mining led the declines on a weaker gold price.
And the negative impact of the recent strength in the Aussie dollar came into sharp focus today after Foster’s Group and Telstra both cut their earnings outlook’s hurt by a higher dollar.
The S&P/ASX200 index is 62 points lower at 4,609 and on the futures market the SPI 200’s down 63 points.
In company news: Babcock & Brown Power (ASX:BBP) says it has reached in principle agreements with all 11 banks in the BBPF Syndicate for a comprehensive restructure of the $2.7 billion senior syndicated loan facility. As at this morning the company says only one credit approval remains outstanding and that bank’s credit committee meets today. Babcock & Brown Power shares are in a trading halt and last traded at 7.6 cents.
Project development and contracting company Leighton Holdings Ltd (ASX:LEI) says it has successfully completed a $670 million syndicated performance bond facility with a consortium of Australian and international lenders. The company says the facility will be used to provide the performance bond obligations of the various Leighton Group operating companies as they take on and deliver construction projects. CFO Peter Gregg says as of November 30, 2009, Leighton had total bank guarantees, bonds and letters of credit in excess of $3 billion. Mr Gregg says this facility increases that capacity and introduces new and diverse banking relationships to the group. Shares in Leighton Holdings fell 0.57 per cent to $36.80.
Turning now to market indices: The best performing sector at midday is the Health Care index, up 12 points at 8,310. Shares in Sirtex Medical advanced 3.08% to $7.03. Shares in Healthscope and Cochlear are also higher.
The worst performing sector at midday is the Telco Services index, down 30 to 1,176. Shares in Reverse Corp fell 3.49% to $0.415. Shares in Telstra and Singtel are also lower at noon.
Looking to New Zealand and the NZSX50 is 5 points higher. Taking a look now at the top 5 stocks by turnover: Topping the list is Telecom of New Zealand, stock up 1.26% at $2.42, followed by Fletcher Building, Guinness Peat, Telstra and Lend Lease Corporation.
To gold and the dollar: Gold is trading at US$1,104.85 an ounce and the Aussie dollar is trading at 88.47 US cents.
