The Australian share market has continued its slow start to remain almost unchanged at midday, investors pausing after a flat lead from Wall Street, although shares in the miners like BHP and Macarthur Coal are gaining ground.
The S&P/ASX200 index is 2 points higher at 4,820 and on the futures market the SPI200’s down 5 points.
In company news: Just one week after a former Macquarie Group Ltd (ASX:MQG) fund manager was caught trying to flee the country, another ex-employee has admitted to manipulating the market. Newton Chan has pleaded guilty to eight counts of market manipulation involving stock trades worth over $6.1 million. ASIC claims that between May 2006 and March 2008, the former Macquarie broker used a number of trading accounts under different names to buy over 34 million shares in payments company, Bill Express, which collapsed in 2008. ASIC alleges the transactions created or were likely to create an artificial price for the company. Mr Chan also pleaded guilty to one count of providing false or misleading information to ASIC. His plea will be heard in Victoria’s Supreme Court on June 21. Shares in Macquarie are down 1% to $49.26.
Transport infrastructure group Transfield Services Ltd (ASX:TSE) has boosted its presence in North America by winning a 30-year Canadian road contract. The company’s joint venture with Dexter Construction Co Ltd has been chosen by the New Brunswick Highway Corporation as the preferred provider of a three decade operations, maintenance and rehabilitation project. The Route 1 Gateway project involves the construction of 55km of a new four-lane highway and upgrades to existing sections of Route 1. Transfield Managing Director and CEO Peter Goode says the contract is an example of the group’s capability to grow the business organically. Transfield’s North American subsidiary has secured over $800 million worth of contracts this financial year, with clients including the Ontario Ministry of Transportation and Florida’s transport department. The contract is expected to be finalised over the next month. Shares in Transfield Services are 1.7% higher at $4.19.
Turning now to market indices: The best performing sector at midday is the Telco Services index, up 6 points at 1,054. Shares in Telstra rose 0.65% to $3.08. Shares in Telecom of New Zealand and Pipe Networks are flat at noon.
The worst performing sector is the Real Estate Investment Trust index, down 5 points to 862. Shares in ING Industrial are down 5.49% to $0.43. Shares in Charter Hall Office Trust are lower and Abacus shares are flat at midday.
Looking to New Zealand and the NZSX50 is 12 points higher. Taking a look at the top 4 stocks by turnover: Heading the list is Telecom of New Zealand, stock up 0.9% at $2.25, followed by Fletcher Building, Westpac and Downer EDI.
To gold and the dollar: Gold is trading at US$1,104.65 an ounce and the Aussie dollar is trading at 91.53 US cents.
