The local share market is weaker at midday, with investor woes over budget cuts and tax hikes overshadowing optimistic company reporting results released today. Sentiment across the market dampened by ongoing concerns for debt in Europe.
The S&P/ASX200 index is 43 points lower at 4,478 and on the futures market the SPI200’s down 31 points.
In company news: Hearing implant company Cochlear Ltd (ASX:COH) has reported record earnings of $75.2 million for the first half of the 2010 financial year. Based on the result, which represents an 8% jump, the company predicts its full year profit will be 15% higher than the previous year. CEO Chris Roberts says the result was buoyed by the successful launch of the company’s new cochlear implant system and a 7% increase in implant unit sales. Shares in Cochlear Ltd rose 4.09% to $63.90.
Singapore Telecommunications Ltd (ASX:SGT), parent of Optus, has posted a profit increase of 24% to $805.6 million for the December 2009 quarter. The telecommunication systems provider says its Australian subsidiary Optus recorded a 4.8% growth in operating revenue to $2.3 billion for the three months to December 31, 2009. Optus CEO Paul O’Sullivan says the company recorded an 11% rise in mobile services revenue, which is the company’s fifth consecutive quarter of double-digit revenue growth. Shares in SingTel gained 1.27% to $2.40.
Turning to market indices: The best performing sector at midday is the Healthcare index, up 58 points at 8,367. Shares in Cochlear were higher, price as mentioned before. Shares in CSL and Sonic Healthcare are also higher.
The worst performing sector at midday is the Financials excluding the Real Estate Investment Trust index, down 103 to 5,155. Shares in Macquarie Group fell 6.49% to $47.08. While shares in Challenger Financial Services and IOOF Holdings are also lower at noon.
Looking to New Zealand and the NZSX50 is 14 points lower.
Taking a look at the top 5 stocks by turnover: Top of the list is Telecom of New Zealand stock down 0.43% to $2.29 followed by; Fletcher Building, Auckland International Airports, Sky City Entertainment Group, and Contact Energy.
To gold and the dollar: Gold is trading at US$1,064 an ounce and the Aussie dollar is trading at 86.43 US cents.
