Following mixed leads from offshore markets overnight the local share market is lower at midday with resource stocks leading the declines on a fall in metals prices. Investors are also showing some caution ahead of key US jobs data for May.
The S&P/ASX200 index is 37 points lower at 4,449 and on the futures market, the SPI200’s down 33.
In company news: The responsible entities for Centro Retail Group (ASX:CER) and Centro Properties Group (ASX:CNP) have told shareholders they will not receive any dividend payment for the year to June 30, 2010. No distributions to ordinary securityholders are permitted to be paid for the duration of Centro’s senior dent facility, and it is unlikely that distributions will be paid prior to any redemption or conversion of the Hybrid Securities. Shares in Centro Properties Group fell 2.7% to $0.18, and shares in Centro Retail Group steady at $0.215.
Hearing device maker Cochlear Ltd (ASX:COH) says its US subsidiary, Cochlear Americas, has signed a settlement agreement with the US Department of Justice and the Offices of Inspector General of the US Department of Health and Human Services. Under the terms of the agreement, Cochlear Americas has agreed to pay US$950,000. The company says it specifically disputes and denies the factual and legal allegations in relation to sales programs and other conduct which has been alleged took place from 1998 to 2003 in the US. However in order to avoid ongoing legal fees and the uncertainty and expense of litigation, the parties have now agreed to resolve the matter. Shares in Cochlear fell 0.36% to $74.72.
Turning now to market indices: The best performing sector at midday is the Health Care index, up 93 points to 8,277. Shares in CSL are 2.1% higher at $32.60. Shares in Sonic Healthcare and Sirtex Medical are also higher.
The worst performing sector at midday is the Materials index, down 204 points to 11,536. Shares in Sandfire Resources lost 6.4% to $3.22, while shares in Ausdrill and Murchison Metals are also lower.
Looking to New Zealand and the NZSX50 is 2 points higher. Taking a look at the top 4 stocks by turnover: Topping the list is Telecom of New Zealand with stock up 1.64% at $1.86 followed by; Fletcher Building, Sky City Entertainment Group, and AMP.
To gold and the dollar: Gold is trading at US$1,207.50 an ounce and the Aussie dollar is trading at 84.45 US cents.
