The local share market has slipped lower at midday after opening higher, with falls in shares in the top miners offsetting gains in financial stocks like the Commonwealth Bank and Westpac.
The S&P/ASX200 index is 11 points lower at 4,809 and on the futures market the SPI200’s down 10 points.
In economic news, the RBA’s decision to raise interest rates this month has done little to dent consumer confidence judging by a new survey. The Westpac/Melbourne Institute index of consumer sentiment rose 0.2% to 117.3 points in March from 117 points in February.
In company news: Atlas Iron Ltd (ASX:AGO) and junior iron ore developer Aurox Resources (ASX:AXO) have agreed to merge via a scheme of arrangement. The merger will see Aurox shareholders receive one Atlas share for every three Aurox shares held. Aurox says the agreement implies a price per Aurox share of $0.74 based on Atlas Iron’s last closing price of $2.21, representing an increase of 173% on Aurox’s last share price. Aurox’s board has unanimously recommended that all shareholders vote in favour of the merger. Aurox says the merger will provide shareholders with the chance to participate in Atlas Iron’s rapidly growing production profile, which will help to position the company as a global iron ore producer. The merged company will have 187 million tonnes of resources. Shares in Atlas Iron are 1.81% lower at $2.17.
Mineral explorer Adamus Resources Ltd (ASX:ADU) hopes to raise up to $30.5 million in a new share sale to ramp up exploration activities at a gold mine in the African nation of Ghana. The company plans to raise $9 million through a placement of 25 million shares at 36 cents each, and a further $21.5 million in a renounceable rights issue, also at 36 cents a share. Adamus says it will use the funds to develop its Southern Ashanti Project, which is currently on time and on budget in terms of construction. CEO Mark Bojanjac says the company is on track to achieve its aim of becoming a 100,000 plus ounce per year gold producer within 12 months. Shares in Adamus Resources lost 5% to $0.38.
Turning now to market indices: The best performing sector at midday is the Telco Services index, up 15 points at 1,016. Shares in Telstra rose 1.72% to $2.96. Shares in iiNet and SingTel are also higher.
The worst performing sector at noon is the Real Estate Investment Trust index, down 18 points to 874. Shares in Mirvac Group are down 3.21% to $1.51. While shares in Commonwealth Property Office Trust and GPT are also lower.
Looking to New Zealand and the NZSX50 is 5 points higher. Taking a look at the top 4 stocks by turnover: Heading the list is Telstra, stock is up 1.58% to $3.85 followed by; Telecom of New Zealand, Fisher & Paykel Healthcare and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,121.90 an ounce and the Aussie dollar is trading at 91.36 US cents.