Aussie stocks touched a 12 month low this morning as investors fled riskier assets on mounting concern for the global economy.
Stocks have recovered some ground and are trading flat at midday on low volume as investors await the RBA’s decision on interest rates after lunch.
The S&P/ASX200 index is flat at 4,222 and on the futures market, the SPI200’s down 4.
In economic news: ABS data shows Australia had a trade surplus of $1.645 billion in May.
In company news: Atlas Iron Ltd (ASX:AGO) says it has had some exploration success at a recently discovered deposit near its Wodgina mine in the Pilbara of Western Australia. Drilling at the Hercules deposit has uncovered grades as high as 60.4% iron at 36 metres. Managing director David Flanagan says the new deposit is within 100 kilometres of iron ore port, Port Hedland and is adjacent to existing operations where Atlas has installed all the required capital, resolved transport and port solutions and started mining. Shares in Atlas Iron fell 0.94% to $2.11.
Grain producer AACL Holdings Ltd (ASX:AAY) says it expects lower production tonnages in fiscal 2010, with a consequent impact on revenue and earnings. The company has been undergoing a comprehensive review of its financial performance for some weeks now. AACL says it will announce its revised earnings guidance for fiscal 2010 as soon as possible. The company also announced a funding agreement with Glencore Grain, who will provide funding for the company’s grain co-production contracts for 2010. Shares in AACL Holdings lost 8.33% to $0.11.
Turning now to market indices: The best performing sector at midday is the Telco Services index, up 15 points to 1,068. Shares in Amcom Telecom are 1.67% higher at $0.305. Shares in Telstra and Singtel are also higher at noon.
The worst performing sector at midday is the Materials index, down 77 points to 11,161. Shares in Mirabela Nickel dropped 4.81% to $1.98. Shares in Mt Gibson Iron and OM Holdings are also lower at noon.
Looking to New Zealand and the NZSX50 is 12 points lower.
Taking a look at the top 4 stocks by turnover: Kiwi Income Property Trust heads the list with stock up 1.11% at $0.91 followed by; Telecom of New Zealand, Fletcher Building, and ANZ.
To gold and the dollar: Gold is trading at US$1,206.20 an ounce and the Aussie dollar is trading at 83.57 US cents.
