The local share market has followed strongly negative leads from Wall Street to sink deep into the red at midday, with falls across most industry sectors triggered by fraud charges against US investment bank Goldman Sachs. The local banks like ANZ and top miners BHP and Rio Tinto are among the stocks hit hardest by the news.
The S&P/ASX200 index is 61 points lower at 4,924, and on the futures market, the SPI200’s down 67.
In company news: Kimberley Metals Ltd (ASX:KBL) has reached an agreement with China’s largest lead producer to allow it to buy a significant stake in the precious and base metals junior. Under the deal, Henan Yuguang Lead & Gold Co Ltd, will take 15% of Kimberley Metals and 25% of a joint venture to develop the Sorby Hills lead, silver and zinc project in Western Australia. Yuguang will buy the 15% interest at 25 cents per share for approximately 20.8 million shares. It will also pay $5 million for its 25% stake in the Sorby Hills joint venture. Kimberley Chairman Jim Wall says the deal will enable the company to pursue the feasibility study on Sorby Hills and accelerate the commissioning of its Mineral Hills Gold project. Shares in Kimberley Metals are down 4.08% at $0.235.
Property developer and investor GPT Group Ltd (ASX:GPT) has decided to take up its full entitlement in a $400 million capital raising for its GPT Wholesale Office Fund. The company says its entitlement is worth $136 million, which will maintain its weighting in the Fund at about 34% and give it further exposure to premium quality assets at a low point in the real estate cycle. GPT Wholesale Office Fund is Australia’s largest unlisted office fund, with interests in 15 assets and a total value of around $2.9 billion. It recently acquired 50% of the office building at 163 Castlereagh Street in Sydney. Shares in GPT Group lost 0.85% to $0.585.
Turning now to market indices: The majority of sectors are in negative territory at midday. The sector with the smallest losses is the Telco Services index, down 3 points to 1,064. Shares in Engin added 6.56% to $0.65. Shares in Amcom Telecommunications and SingTel are also higher at noon.
The worst performing sector is the Industrials index, down 71 points to 3,915. Shares in Virgin Blue fell 4.58% to $0.625, while shares in Qantas and Brambles are also lower.
Looking to New Zealand and the NZSX50 is 25 points weaker. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list, stock steady at $2.18, followed by Auckland International Airport, Fletcher Building and Ryman Healthcare.
To gold and the dollar: Gold is trading at US$1,136.85 an ounce and the Aussie dollar is trading at 92.25 US cents.
