Jittery investors have nervously taken a step back today as concerns over Europe’s debt situation and health of the US economy mounted. The major banks led the market lower tracking their US peers after news that investigations into Goldman Sachs may also spread to the other investment banks.
The S&P/ASX200 index is 48 points lower at 4,605 and on the futures market, the SPI200’s down 61.
In company news: Beverage maker Coca-Cola Amatil Ltd (ASX:CCL) has reaffirmed its expectations for high single digit growth in earnings for the first half of 2010. However, the company was cautious with its outlook for the second half saying it is too early to assess the impact of interest rate increases and a less certain global economic outlook on consumer confidence and spending. In Australia, the company expects to achieve positive volume growth for the first half, despite the less favourable consumer environment. Shares in Coca-Cola Amatil rose 1.92% to $11.16.
Oil and gas company Santos Ltd (ASX:STO) has chosen Fluor Australia as the preferred contractor to carry out engineering, procurement and construction of the upstream facilities of the Gladstone liquefied natural gas project in QLD. Santos says it anticipates awarding the EPC contract subject to a final investment decision. In the interim, Santos says it will extend Flour’s engineering design contract to include early works activities of approximately $50 million. Shares in Santos dropped 0.3% to $13.11.
Turning now to indices: Majority of sectors are in the red at midday, however one of the better performing sectors is the Health Care index, up 143 points at 8,713. Shares in Healthscope are up 17.78% at $5.30 after the company announced this morning that it had received a takeover approach. Shares in Primary Health Care and Ramsay Health Care are also higher at noon.
The worst performing sector is the Financials excluding Real Estate Investment Trust index, down 92 points to 5,359. Shares in Lend Lease Group are down 2.82% to $7.93, while shares in NAB and ANZ are also lower.
Looking to New Zealand and the NZSX50 is down 5 points. Taking a look at the top 4 stocks by turnover: At the top of the list is Telecom of New Zealand with stock up 0.95% at $2.13 followed by; Fletcher Building, Telstra and Guinness Peat Group.
To gold and the dollar: Gold is trading at US$1,238.60 an ounce and the Aussie dollar is trading at 89.46 US cents.
