The local share market is flat at midday, ending seven straight days of gains after a disappointing lead from Wall Street, with resource stocks dragged down by weaker copper and gold prices.
The S&P/ASX200 index is 2 points higher at 4,810 and on the futures market the SPI200’s up 10 points.
In economic news, a survey of business expectations has revealed sales and profit forecasts for the June quarter are at their highest in six years, indicating the worst of the global financial crisis is over. The Dun & Bradstreet survey shows sales expectations have risen 5 index points to a read of 33, while profit predictions for the three months to June 30, 2010, increased by 8 points to a read of 18.
In company news: Surfwear retailer Billabong Ltd (ASX:BBG) says it is the subject of a $53 million civil compensation claim by its former Indonesian licensee.A claim requesting compensation and US$100 million in damages arising out of Billabong’s termination of its license agreement with CV Bali Balance has been lodged with the Denpasar District Court in Indonesia. Billabong terminated the licence in 2005 relying on a right of termination in the agreement. The company has been conducting its business in Indonesia directly through its wholly owned subsidiary, PT Billabong Indonesia since the termination. Billabong says there is no basis for the claim and doubts it will have an adverse impact on its operations outside Indonesia or on the revenue, profitability or financial condition of the group as a whole. Shares in Billabong are 0.75% higher at $10.74.
David Jones Ltd (ASX:DJS) has appointed law firm partner Philippa Stone as a non-executive director. The upmarket retailer says Ms Stone, a corporate and commercial partner of Freehills law firm, will stand for election as director at its annual general meeting on December 3. Ms Stone is also a member of the ASX’s Listing Appeals Tribunal, the Law Council of Australia’s Corporations Committee and the International Air Services Commission. David Jones chairman Bob Savage says Ms Stone’s experience in business and legal matters will strongly complement the existing board. Shares in David Jones rose 0.4% to $5.06.
Turning now to market indices: The best performing sector at midday is the Health Care index, up 70 points at 8,852. Shares in Sonic Healthcare rose 1.36% to $13.40. Shares in CSL and ResMed are also higher.
The worst performing sector at noon is the Materials index, down 82 points to 12,600. Shares in Alumina are down 2.05% to $1.675. While shares in Lihir Gold and BHP are also lower.
Looking to New Zealand and the NZSX50 is 8 points lower. Taking a look at the top 4 stocks by turnover: Heading the list is Fletcher Building, stock is up 0.74% to $8.16 followed by; Telecom of New Zealand, AMP and Kiwi Income Property Trust.
To gold and the dollar: Gold is trading at US$1,124 an ounce and the Aussie dollar is trading at 90.99 US cents.
