The local share market is lower at midday dragged down by the miners on weaker metals prices and disappointing housing data out of the US which fuelled concern for the US economic recovery resulting in a lackluster finish on Wall St overnight.
The S&P/ASX200 index is 14 points lower at 4,545 and on the futures market, the SPI200’s down 7.
In economic news: The Melbourne Institute household financial conditions index rose 17.2% to a read of 33.7 in June, from 28.8 in March. However, credit card debt took over mortgage debt as the main form of household debt in June.
And according to data released by the Department of Education, Employment and Workplace Relations, the total annualised wage increase through bargaining agreements rose 0.4% to 4% in the December quarter, the first rise in nine months.
In company news: Port and rail operator Asciano Group (ASX:AIO) says it will not pay a final dividend for the 2010 financial year. This means the company has not paid a dividend to shareholders in over two years, and comes after news that CEO Mark Rowsthorn will extend his contract as head of the company and receive a $900,000 bonus. In a statement today, Asciano says given the company’s better than expected growth prospects and consequent capital expenditure requirements, and in light of the impairment charge expected to be reported for fiscal 2010, it has decided not to pay a dividend. Shares in Asciano Group rose 3.08% to $1.675.
Business software supplier Bravura Solutions Ltd (ASX:BVA) says it has complete the acquisition of Mutual Fund Technologies from FIL Ltd. CEO Simon Woodfull says the acquisition places the company in a strong position to grow its European transfer agency footprint. Bravura says the transaction means that three of the UK’s top five fund managers will now run on Bravura transfer agency platforms. Bravura says the acquisition is expected to be earnings per share accretive, highly cash generative due to long term annuity revenue streams, and will also deliver improved predictability of earnings. Shares in Bravura are steady at $0.105.
Turning now to market indices: The best performing sector at midday is the Industrials index, up 32 points to 3,475. Shares in Mermaid Marine Australia are 5.88% higher at $2.70. Shares in Leighton Holdings and Asciano Group are also higher.
The worst performing sector at midday is the Telco Services index, down 11 points to 1,066. Shares in Telecom of New Zealand lost 2.27% to $1.51, shares in Amcom Telecommunications and Telstra are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 13 points weaker. Taking a look at the top 4 stocks by turnover: Top of the list is Telecom of New Zealand with stock down 2.6% at $1.87 followed by; Fletcher Building, Westpac, and ANZ.
To gold and the dollar: Gold is trading at US$1,233.50 an ounce and the Aussie dollar is trading at 85.93 US cents.
