Following falls on Wall St overnight, the local share market is weaker at midday, erasing much of yesterday’s gains as investors flee riskier assets on fresh concern for Europe’s debt situation after the Bank of Spain took over a small savings bank on the weekend.
The S&P/ASX200 index is 62 points lower at 4,333 and on the futures market, the SPI200’s down 75.
In company news: CP2, the largest shareholder of toll road operator Transurban Group Ltd (ASX:TCL), has lodged an application with the Takeovers Panel requesting that the company be restrained from proceeding with the rights issue in its current form. Early this month Transurban knocked back a sweetened takeover bid from a consortium including CP2, the Canadian Pension Plan Investment Board and the Ontario Teacher’s Pension Plan. The takeover offer’s followed news the company had agreed to acquire the Lane Cove Tunnel in Sydney for $630.5 million, and fund the purchase via a $542.3 million equity raising. Shares in Transurban Group dropped 0.23% to $4.40.
Owner of Radio Rentals, Thorn Group Ltd (ASX:TGA) says profit for the year rose almost 60% despite a soft retail market. Net profit after tax for the 12 months to March 31, 2010, jumped 58.2% to $19.5 million, compared to $12.3 million recorded the year before. Revenue grew 14% to $145.1 million, the company declaring a final dividend of 3.76 cents a share. Thorn says it has found that increased demand has been generated by many of its customers not having mortgages, leaving them less affected by rising interest rates. Preferring to rent rather than buy goods. The company says it has doubled profit since listing on the ASX three years ago. Thorn Group shares rose 2.21% to $1.155.
Turning now to market indices: The best performing sector at noon is the Health Care index, up 57 points at 8,094. Shares in ResMed are 3.72% higher at $7.52. Shares in CSL and Cochlear are also higher at midday.
The worst performing sector is the Materials index, down 220 points to 11,092. Shares in Murchison Metals lost 4.5% to $1.91, while shares in Mt Gibson Iron and Independence Group are also lower.
Looking to New Zealand and the NZSX50 is down 39 points. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand with stock down 3.06% at $1.90, followed by Sky City Entertainment Group, Fletcher Building and Fisher & Paykel Healthcare.
To gold and the dollar: Gold is trading at US$1,190.25 an ounce and the Aussie dollar is trading at 82.18 US cents.
