The local share market is in the red at midday as investors wait on the sidelines for more news on the proposed mining tax.
New PM Julia Gillard told media at a conference this morning that the government needs to move swiftly on negotiations with the mining industry and build on the goodwill that has been established.
Yesterday the government and miners agreed to withdraw each side’s advertising campaigns in relation to the proposed tax.
The S&P/ASX200 index is 48 points lower at 4,432 and on the futures market, the SPI200’s down 59.
In company news: Private equity firm Kohlberg Kravis Roberts & Co is reportedly to go it alone in its bid for Aussie hospital operator Healthscope Ltd (ASX:HSP) after CVC Asia-Pacific decided not to join the firm in its US$1.5 billion bid. According to a Reuters report KKR says the company maintains a strong interest in Healthscope and will continue with its bid alone. KKR trumped an earlier bid from a consortium including Blackstone Group, TPG and Carlyle. Shares in Healthscope dropped 2.06% to $5.24.
New Zealand based Fisher & Paykel Healthcare Corp Ltd (ASX:FPH) says a number of tax changes announced in the NZ budget will have an impact on its profitability. The company says its deferred tax liability will increase and as a result this will decrease its net profit after tax by an estimated NZ$11 million for the year to March 31, 2011. The NZ Government has decided to remove the ability to depreciate buildings, reduced the corporate tax rate from 30% to 28% from April 1, 2011, and the removal of depreciation loading for certain assets acquired after May 20, 2010. The company says it does not expect the impact of these changes on its cash flow to be significant, and says the anticipated cash flow benefit of the reduction in the corporate tax rate will likely offset any impact from the removal of the ability to depreciate buildings and the depreciation loading. Shares in Fisher & Paykel Healthcare are steady at $2.55.
Turning now to market indices: Majority of sectors are in the red at midday, the only sector in the black is the Real Estate Investment Trust index, up 2 points to 872. Shares in Westfield Group are 1.12% higher at $12.68. Shares in Bunnings Warehouse and GPT Group are also higher at noon.
The worst performing sector at midday is the Financials excluding Real Estate Investment Trust index, down 75 points to 4,930. Shares in Suncorp-Metway fell 2.88% to $8.10, while shares in Macquarie Group and Westpac are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 18 points lower. Taking a look at the top 4 stocks by turnover: heading the list is Telecom of New Zealand with stock steady at $1.97 followed by Fletcher Building, ANZ and Westpac.
To gold and the dollar: Gold is trading at US$1,244.40 an ounce and the Aussie dollar is trading at 86.73 US cents.
