Following fresh concerns about Europe’s sovereign debt woes, Aussie shares have slumped at midday. All industry sectors are in negative territory, with the miners like BHP Billiton and Mincor Resources leading the broad-based losses on weaker metal prices.
The S&P/ASX200 index is 145 points lower at 4,304 and on the futures market, the SPI200’s down 157.
In economic news: Construction activity expanded for a third straight month in May, boosted by a lift in new orders, according to new data. The Australian Industry Group/Housing Industry Association performance of construction index slipped 2.6 points to a read of 53.2, but remained above the threshold that separates expansion from contraction. And job ads jumped 4.3% in May to a total of 167,000 per week seasonally adjusted, according to ANZ’s monthly survey. The rise follows a 1.2% drop in April and represents a 22% increase on the same time a year ago.
In company news: Duet Group (ASX:DUE) says it has put its 29% stake in US utility Duquesne Light up for sale. Duet, which is jointly managed by AMP and Macquarie Group, says a sale would simplify its asset portfolio and free up funds to finance growth opportunities in Australia or capital management initiatives. The sale is expected to be finalised by the end of the year, subject to regulatory approvals. Shares in Duet Group have fallen 3.33% to $1.595.
Coote Industrial Ltd (ASX:CXG) has revealed it is planning to sell off some of its assets and is expecting a significant improvement in performance next financial year. The company has been the subject of a takeover offer from its major shareholder Elph Pty Ltd, which would result in Elph holding 35% of Coote’s issued shares. The takeover process has been extended until Wednesday and Coote’s board today again recommended that shareholders approve the offer. The company says it has also reached agreement with Elph on the terms of a $42.6 million equity capital raising to be underwritten by Elph. The proceeds will allow Coote to have additional working capital, pay down debt and meet obligations with other shareholders. The company will also conduct a review that could result in some non-core assets being sold. Coote Industrial is in a trading halt. Shares last traded at $0.235.
Turning now to market indices: All industry sectors are in the red at midday, however, the sector with the smallest losses is the Health Care index, down 35 points to 8,270. Shares in Chemgenex are 1.67% higher at $0.305. Shares in Nanosonics and CSL are also higher.
The worst performer at noon is the Energy index, down 579 points to 14,167. Shares in Oil Search lost 4.24% to $5.42, while shares in Santos and Paladin Energy are also lower.
Looking to New Zealand and the NZSX50 is 6 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; Westpac, Fletcher Building and Sky City Entertainment Group.
To gold and the dollar: Gold is trading at US$1,219.10 an ounce and the Aussie dollar is trading at 81.13 US cents.
