Australian shares are lower at midday as concerns for a softening in demand from China dragged miners like giant BHP down. The release of inflation data also indicated that another rate rise may be on the cards when the RBA meets next week.
The S&P/ASX200 index is 73 points lower at 4,645 and on the futures market the SPI200’s down 43 points.
In economic news: The Westpac/Melbourne Institute leading index of economic activity rose 7.6% in November. The rise has fuelled expectations for another rate rise when the RBA meets next week.
And according to data from the ABS, the Consumer Price index rose 0.5% in the December quarter. Economists had expected a 0.4% rise.
In company news: Grocery retail giant Woolworths Ltd (ASX:WOW) has reported a 4.2% increase in sales for the half year to $27.2 billion. Total sales, excluding the impact of petrol sales, rose 6% to $24.4 billion. Australian food and liquor sales rose 6.8% to 18.1 billion for the 27 weeks to the 3rd of January 2010. CEO Michael Luscombe says the company’s supermarkets achieved solid volume and market share growth whilst experiencing lower levels of inflation in Australia and New Zealand. Shares in Woolworths fell 1.82% to $26.98.
Super Cheap Auto Group Ltd (ASX:SUL) says it expects earnings before, interest, tax, depreciation and amortisation to be 20 to 21% higher than a year ago. The company says sales increased 11.9% for the 26 weeks to December 2009 across its three businesses. However the company says sales and gross margin performance at Goldencross Cycles has been below business plan expectations and the business is forecast to post an earnings before interest, tax and amortisation loss of around $3.5 million. Shares in Super Cheap Auto dropped 3.49% to $5.26.
Turning now to market indices: All sectors are in the red at midday, however the sector with the smallest loss is the Health Care index down 21 points at 8,345. Shares in Sirtex Medical advanced 2.51% to $6.53. Shares in ResMed and Biota Holdings are also higher.
The worst performing sector at midday is the Materials index, down 296 to 11,963. Shares in Murchison Metals fell 6.64% to $2.25. While shares in Mirabela Nickel Equinox Minerals are also lower at noon.
Looking to New Zealand and the NZSX50 is 4 points lower. Taking a look at the top 5 stocks by turnover: Head of the list is Fletcher Building, stock down 0.37% at $8.15, followed by Telecom of New Zealand, Air New Zealand, The Warehouse Group and Nuplex Industries.
To gold and the dollar: Gold is trading at US$1,101.95 an ounce and the Aussie dollar is trading at 90.29 US cents.
