Aussie stocks are trading marginally lower at midday, despite gains earlier, as lingering concerns for the debt crisis mounting in Europe weighed on the market. Earlier bargain hunting among the banks and miners who took a hammering yesterday lifted the local market.
The S&P/ASX200 index is 2 points lower at 4,466 and on the futures market, the SPI200’s down 17.
In economic news: Minutes from the RBA’s May 4 monetary policy meeting indicate that the central bank is likely to leave rates on hold next month. The RBA also says despite the debt woes in Greece the global economy continues to improve, with a strengthening commodities market driving growth locally.
In company news: Takeover target AXA Asia Pacific Holdings Ltd (ASX:AXA) says it is undecided whether to terminate a $13 billion takeover agreement with National Australia Bank Ltd (ASX:NAB) after the deal was blocked by the ACCC. Chairman Rick Allert has told shareholders that if a satisfactory conclusion is not reached by May 31, the independent directors of AXA can then decide whether or not to terminate the agreement made to implement the NAB proposal. There has been much speculation that the watchdog’s rejection of NAB’s proposal will entice AMP to make another bid for AXA, with AMP saying recently that it still finds an AXA tie-up attractive. Shares in AXA Asia Pacific Holdings fell 1% to $5.93. Aussie coal miner at the centre of a bidding war, Macarthur Coal Ltd (ASX:MCC) has rejected a sweetened takeover bid from US coal giant Peabody Energy. On May 10, Macarthur announced that it had received a revised bid from Peabody to acquire all the issued shares in Macarthur for $15 a share by way of a scheme of arrangement. However, the miner says based on price and the conditions of the proposal, it cannot be recommended to shareholders. Macarthur also says it has the support of its major shareholders, with CITIC saying it believes the long term strategic value of Macarthur Coal exceeds by a significant margin the cash offer price from Peabody. Shares in Macarthur Coal plunged 10.86% to $11.90.
Turning now to indices: The best performing sector at noon is the Telco Services index, up 11 points at 1,024. Shares in Telecom of New Zealand are up 2.2% at $1.625. Shares in Macquarie Telecom Group and Singtel are also higher at midday.
The worst performing sector is the Industrials index, down 31 points to 3,581. Shares in Transurban Group are down 5.13% to $4.44, while shares in Alesco Corp and Asciano Group are also lower.
Looking to New Zealand and the NZSX50 is up 7 points. Taking a look at the top 4 stocks by turnover: At the top is Telecom of New Zealand with stock up 1.45% at $2.10 followed by; Fisher & Paykel Appliances, Fletcher Building and Westpac.
To gold and the dollar: Gold is trading at US$1,226.15 an ounce and the Aussie dollar is trading at 87.26 US cents.
