Aussie stocks are trading lower at midday as optimism for China’s move to make its currency more flexible waned as concerns grew that the move could make Chinese exports more expensive and slow global growth. Gold miners like Newcrest Mining and Lihir Gold are feeling the pressure after gold prices fell overnight.
The S&P/ASX200 index is 16 points lower at 4,596 and on the futures market, the SPI200’s down 11.
In company news: West African iron ore explorer DMC Mining Ltd (ASX:DMM) says its directors intend to accept a revised takeover offer from Cape Lambert Resources Ltd (ASX:CFE) in the absence of a superior offer. In a statement today, the board says it is not yet in a position to make a recommendation to shareholders in relation to either the revised Meijin Energy offer or Cape Lambert’s because no final statements have been made from the two companies. Cape Lambert’s unconditional offer is 53 cents per DMC share, valuing the company at over $46 million. Meijin also made a bid of 53 cents a share for DMC, however the offer is conditional upon securing a controlling 56.1% stake in the company. Cape Lambert’s offer closes on Friday, unless extended. Shares in DMC Mining lost 3.7% to $0.52.
Property fund manager Charter Hall Group (ASX:CHC) says it will pay shareholders a dividend of 1.6 cents a share for the second half of the fiscal year. The second half dividend takes the total paid to shareholders for the year to June 30, 2010 to 3.2 cents a share. The second half distribution equates to around $18.6 million, more than the first half payment due to the number of securities on issue increasing from 700.25 million, at December 31, 2009, to 1.16 billion at June 2010 after an equity raising in March. Shares in Charter Hall Group dropped 2.33% to $0.63.
Turning now to market indices: The best performing sector at midday is the Real Estate Investment Trust index, up 10 points to 908. Shares in GPT Group are 1.72% higher at $2.96. Shares in Westfield Group and Mirvac Group are also higher.
The worst performing sector at midday is the Telco Services index, down 13 points to 1,113. Shares in Singtel fell 1.55% to $2.54, while shares in Telstra and Telecom of New Zealand are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 9 points lower. Taking a look at the top 4 stocks by turnover: Ryman Healthcare heads the list, stock down 2.83% at $2.06 followed by; Telstra, Telecom of New Zealand, and Sky City Entertainment Group.
To gold and the dollar: Gold is trading at US$1,240 an ounce and the Aussie dollar is trading at 88.14 US cents.
