The local share market is lower at midday despite a positive start, investors cautious on concern for the global economy and its growth prospects.
The market initially rose this morning on higher metals prices and on the back of gains in the banks following gains in their US peers on the introduction of new US banking laws.
The S&P/ASX200 index is 25 points lower at 4,388 and on the futures market, the SPI200’s down 37.
In company news: Gindalbie Metals Ltd (ASX:GBG) acting chairman George Jones today asked shareholders to approve a capital raising and share placement to joint venture partner in the Karara Iron Ore project, Ansteel. The funds are needed to cover the revised project construction cost which is now $1.975 billion, which identified the need for a further $122 million in funding. Both Gindalbie and Ansteel have agreed to pay $61 million each to cover the extra cost. In addition Gindalbie and Ansteel have agreed to contribute up to $107.5 million each towards the pre-commissioning and working capital costs for the project. Based on long term iron ore price forecasts, Mr Jones says Karara ill initially generate around $1 billion in annual export revenues, building to $3 billion annually as the project grows to its ultimate production level of 14-30 million tonnes per annum. Shares in Gindalbie Metals fell 3.73% to $1.16.
Infigen Energy Ltd (ASX:IFN), formerly Babcock & Brown Wind Partners, is to proceed with the construction of its sixth wind farm in Australia, the 42 mega watt Woodlawn wind farm in New South Wales. The wind farm, which is adjacent to the company’s operational Capital wind farm, is expected to be completed in the second half of 2011. Infigen says it is currently in discussion with parties regarding sales arrangements for the outputs of the wind farm. Shares in Infigen dropped 3.53% to $0.82.
Turning now to market indices: Majority of sectors are in the red at midday, the sector with the smallest loss at midday is the Financials excluding Real Estate Investment Trust index, down 25 points to 4,899. Shares in QBE Insurance are 0.44% higher at $18.43. Shares in Commonwealth Bank are higher while shares in IAG are flat at noon.
The worst performing sector at midday is the Industrials index, down 44 points to 3,263. Shares in Hills Industries fell 5.33% to $2.13, while shares in Mermaid Marine Australia and Macmahon Holdings are also trading lower at noon.
Looking to New Zealand and the NZSX50 is 12 points lower. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock down 2.54% at $1.92 followed by Contact Energy, Fletcher Building, and Westpac.
To gold and the dollar: Gold is trading at US$1,257.10 an ounce and the Aussie dollar is trading at 87.6 US cents.
