Australian shares have edged back into the black at midday, as the market struggles to make headway after flat to mixed leads from offshore trading overnight. The S&P/ASX200 index is 3 points higher at 4,866 and on the futures market the SPI200’s up 10 points.
In economic news: A report has found Australia’s economy is set for further growth this year, but the rapid deterioration of household finances is likely to pose a hurdle. The Melbourne Institute bulletin of economic trends shows the domestic economy should grow by 0.8% during the March quarter and by 0.6% in the following three quarters. In company news: Arrow Energy Ltd (ASX:AOE) shares are in a trading halt pending an update on its takeover offer by Royal Dutch Shell and PetroChina. The gas explorer is reportedly close to getting the energy giants to agree to a deal to lift their $3.3 billion bid. On March 8, Shell and PetroChina offered $4.45 in cash per Arrow share plus a share in a new entity holding the company’s international business. The trading halt is expected to last until the market opens next Tuesday or when Arrow makes an announcement about the deal. Arrow Energy shares last traded at $5.29.
Packaging company Amcor Ltd (ASX:AMC) is facing a potential $697 million damages claim from customers after it was found guilty in 2007 of engaging in price fixing with rival Visy Industries. Australia’s Competition and Consumer Commission successfully prosecuted the cartel and Visy was fined $36 million but Amcor was granted immunity for alerting regulators to the cartel’s existence. Dow Jones Newswires reports that a class action, involving around 5500 parties, has now been launched by Queensland banana packager, Jarra Creek Central Packaging Shed, demanding damages. Amcor says it will dispute the damages estimate put forward by the class action. Shares in Amcor are up 0.49% at $6.11.
Turning now to market indices: The best performing sector at midday is the Industrials index, up 21 points at 3,998. Shares in Downer EDI rose 2.54% to $7.66. Shares in Leighton Holdings and Brambles were also higher at noon.
The worst performing sector is the Materials index, down 37 points to 12,700. Shares in Incitec Pivot are down 4.59% to $3.53. Shares in Bluescope Steel and BHP are also lower at midday.
Looking to New Zealand and the NZSX50 is 11 points lower. Taking a look at the top 4 stocks by turnover: First in the list is Telecom of New Zealand, stock is down 1.86% at $2.11, followed by ANZ Bank, Kathmandu Holdings and Fletcher Building.
To gold and the dollar: Gold is trading at US$1,125.55 an ounce and the Aussie dollar is trading at 92.11 US cents.
