The local share market is lower at midday, as nervous investors flee riskier assets following weak US housing data released overnight that sent Wall St into the red on Tuesday.
The energy sector is the worst performer at midday as ongoing tensions between BP and the White House over the Gulf of Mexico oil spill puts pressure on local energy firms.
In more positive news, gold miners like Newcrest Mining are higher after gold prices strengthened overnight.
The S&P/ASX200 index is 52 points lower at 4,506 and on the futures market, the SPI200’s down 56.
In company news: Suncorp-Metway Ltd (ASX:SUN) says it plans to more than double new business over the next three years through building its footprint in the direct sales and financial advice markets. Suncorp Life CEO Geoff Summerhayes says the company’s strategy is clear and it is on track and has made excellent progress. Mr Summerhayes says Suncorp has strengthened and grown its presence in the independent financial advisor market by building its Asteron brand. The company has also begun developing a direct distribution business with new offers launched to Suncorp, GIO and APIA customers. Shares in Suncorp-Metway dropped 1.19% to $8.32.
A trading halt in shares of Sundance Resources Ltd (ASX:SDL) who’s board members were aboard the ill-fated flight that crashed near the Gabonese border in the Congo, West Africa, has been extended. In a statement released to the market today, Sundance says at this time the bodies have not been removed from the site and the company cannot predict when this will take place. However, the company says a team of experts have been dispatched to the area and significant resources including from Australian mining contractors nearby, are involved in clearing thick vegetation to allow access to the site. Shares in Sundance Resources last traded at $0.13.
Turning now to market indices: All sectors are in the red at midday, however the sector with the smallest loss is the Consumer Staples index, down 7 points to 7,526. Shares in Coca-Cola Amatil are 0.52% higher at $11.68. Shares in Goodman Fielder are also higher while shares in and Foster’s Group are flat.
The worst performing sector at midday is the Energy index, down 268 points to 14,753. Shares in Mantra Resources fell 5.38% to $4.40, while shares in Molopo Energy and Aquila Resources are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 10 points lower. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand tops the list with stock steady at $1.90 followed by; Fletcher Building, Guinness Peat Group, and Westpac.
To gold and the dollar: Gold is trading at US$1,240.15 an ounce and the Aussie dollar is trading at 87.02 US cents.
