Aussie stocks are lower at midday following a weak lead from Wall St overnight and fall in commodity prices. However the market has come off earlier lows with mining stocks and banks starting to recover some ground.
The S&P/ASX200 index is down 15 points at 4,703 and on the futures market the SPI200’s down 15 points.
In company news: Medical diagnostic services provider Sonic Healthcare Ltd (ASX:SHL) has reaffirmed its full year earnings guidance after reporting a 13.7% jump in statutory profit to $155.2 million for the first half. Statutory revenue rose 3.5% to $1.49 billion for the six months to December 31, 2009 up from $1.43 billion in the first half of fiscal 2009. Looking ahead the company reaffirmed its guidance for net profit growth of 10 - 15% over the 2009 ordinary earnings of $315 million on a constant currency basis. Sonic declared an interim dividend of 24 cents a share. Shares in Sonic Healthcare fell 3.73% to $13.95.
Oil Search Ltd (ASX:OSH) says construction is underway on the PNG LNG project with first LNG sales targeted for 2014. The company says the project will be transformational for Oil Search and will more than double the company’s production and provide a strong cash flow over 30 years. The decision to go ahead with the project has increased the oil company’s total proven and probable reserves by over eight fold. Oil Search today however posted a 57.3% drop in profit for 2009 due to a slump in oil prices and weaker sales. Shares in Oil Search dropped 0.19% to $5.29.
Turning now to market indices: The best performing sector at midday is the Real Estate Investment Trust index, up 2 points at 858. Shares in GPT Group gained 0.84% to $0.60. Shares in Mirvac Group and Bunnings Warehouse are also higher.
The worst performing sector at midday is the Consumer Discretionary index, down 15 points to 1,606. Shares in Aristocrat Leisure declined 4.93% to $4.24. While shares in APN News and Media and Specialty Fashion Group are also lower at noon.
Looking to New Zealand and the NZSX50 is 3 points higher. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand, stock down 0.42% at $2.35, followed by; Contact Energy, Westpac and AMP NZ Office Trust.
To gold and the dollar: Gold is trading at US$1,114.75 an ounce and the Aussie dollar is trading at 90.09 US cents.
