The local share market is a sea of red at midday with the major miners and top banks leading the declines. Fears for the global economic recovery heightened after concern surfaced for debt problems in EU countries and following weak economic data out of the US overnight.
The S&P/ASX200 index is 128 points lower at 4,493 and on the futures market the SPI200’s down 132 points.
In economic news: The RBA says interest rates are likely to rise further to keep inflation in check, as the local economy continues to improve. In its quarterly statement on monetary policy, the central bank said unemployment had likely peaked at around 5.75% and that strong housing and resource investment would help lift economic growth.
And the Australian Industry Group/Housing Industry Association’s construction index rose 8.4 points to a read of 57.7 in January, way above the 50 mark which separates expansion from contraction.
In company news: Electrical and furniture retailer Harvey Norman Holdings Ltd (ASX:HVN) has reported a 4% rise in sales to $3.27 billion for the six months to December 31. Like-for-like sales, stores open more than a year, increased by 2.5% compared to the same period the year before. Harvey Norman expects to report a 40% increase in profit before tax and minority items for the period. Harvey Norman shares fell 2.96% to $3.61.
Airport owner MAp Airports (ASX:MAP) has reported a 5.8% fall in full year earnings at its Brussels Airport. For the 12 months to December 31, 2009 Brussels Airports recorded earnings before, interest, tax, depreciation and amortisation of $322.79 million, on the back of a 3.6% drop in revenue to $581.21 million for the year. MAp Airports has a 39% interest in Brussels Airports. Shares in MAp Airports dropped 2.74% to $2.84.
Turning now to market indices: The majority of sectors are lower at midday, however the only sector not in the red is the Healthcare index, up 34 points at 8,306. Shares in ResMed added 7.01% to $6.41. Shares in Sonic Healthcare and CSL are also higher.
The worst performing sector at midday is the Real Estate Investment Trust index, down 39 to 861. Shares in Westfield Group fell 6.72% to $12.07. While shares in Mirvac Group and Stockland are also lower at noon.
Looking to New Zealand and the NZSX50 is 55 points lower. Taking a look at the top 5 stocks by turnover: Top of the list is Telecom of New Zealand stock down 3.32% at $2.33 followed by; Fletcher Building, Goodman Property Trust, Kiwi Income Property Trust, and Contact Energy.
To gold and the dollar: Gold is trading at US$1,064.90 an ounce and the Aussie dollar is trading at 86.55 US cents.
