Following mixed leads from offshore markets overnight Aussie stocks are down at midday dragged into the red by declines in the miners on weaker base metals prices.
The government says it will support new laws aimed at claiming back bonuses paid to directors and execs in the event of a misstatement in a company’s financial statements. Treasurer Wayne Swan says the new laws are to promote transparent, accountable and responsible remuneration practices.
The S&P/ASX200 index is 24 points lower at 4,978, and on the futures market, the SPI200’s down 28.
In company news: Following a sweetened takeover bid from US coal giant Peabody Energy, coal miner Macarthur Coal Ltd (ASX:MCC) says two of its three major shareholders consider the revised offer worth considering. Peabody Energy raised its takeover bid to $16 a share, valuing Macarthur at $4.1 billion.POSCO confirmed its in-principle support for a Peabody-led privatisation of Macarthur in the absence of a superior proposal. Meanwhile ArcelorMittal says while it is not providing any specific decision as yet it does recognise that the Peabody offer is one that warrants Macarthur giving it due consideration. Macarthur is to hold a meeting today to consider Peabody’s revised proposal. Shares in Macarthur Coal added 7.4% to $16.41.
Base metals explorer Liontown Resources Ltd (ASX:LTR) and gold miner Ramelius Resources Ltd (ASX:RMS) have formed a joint venture to accelerate exploration of Liontown’s highly prospective Mt Windsor Gold Project in North Queensland. Ramelius has the opportunity to earn a 60% interest in the gold project by spending $7 million in stages over four years, with a minimum commitment of $1.25 million in the first year. The Mt Windsor Project is located in the same geological province that hosts the multi-million ounce Charters Towers, Ravenswood, Mt Wright and Mt Carlton gold deposits. Shares in Liontown Resources gained 2.94% to $0.07 and shares in Ramelius Resources are steady at $0.515.
Turning now to market indices: The best performing sector at midday is the Health Care index, up 34 points to 9,114. Shares in Pharmaxis added 1.77% to $2.87. Shares in CSL and Ansell are also higher at noon.
The worst performing sector is the Energy index, down 238 points to 15,939. Shares in AWE fell 6.45% to $2.61. While shares in New Zealand Oil & Gas and Centennial Coal are also lower.
Looking to New Zealand and the NZSX50 is 4 points weaker. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list, stock down 0.46% at $2.17, followed by Fletcher Building, ANZ and Infratil.
To gold and the dollar: Gold is trading at US$1,155.50 an ounce and the Aussie dollar is trading at 93.08 US cents.
