The Australian share market is down by almost 1% at midday, with most indices in the red, dragged down by losses in banking and mining stocks.
The S&P/ASX200 index is down 45 points at 4,496 and on the futures market, the SPI200 is down 45 points. To company news: According to the Australian Associated Press, Commonwealth Bank of Australia (ASX:CBA) has defended its $5.66 billion profit, Chief Executive Ralph Norris saying that the bank has supported its employees and shareholders. Commonwealth bank today reported annual cash net profit of $6.1 billion, up 42% from the year before, but is already facing criticism that its profit may even become an election issue over the size of its earnings. AAP says as a result, Mr Norris has shed light on where the profits go, explaining that the bank has shared $18 billion of revenue with its shareholders, and, though already employing 45,000 people, has increased employees in a period where many global banks are cutting staff. Shares in Commonwealth Bank are 1.95% down at $51.72.
Orica Ltd (ASX:ORI) has announced the completion of a US$600 million bond issue, issuing senior fixed rate notes to mature in 10,12,15 and 20 years. The explosives and fertilizer maker says the US$335 million notes were issued with a coupon of 4.53% to mature in 2020 in the US private placement market. Executive Director Finance Noel Meehan says the outstanding result demonstrates the confidence investors have in Orica’s performance, adding that the proceeds of the issue will be used to repay committed bank lines and commercial paper, allowing those facilities to fund growth opportunities. Shares in Orica are 0.24% up at $25.21.
Turning now to market indices: As mentioned, most indices are in the red at midday: Though the best performing index is the Health Care sector, up 26 points at 8,290. Shares in Ansell are 1.67% higher at $13.42. Shares in CSL and Healthscope are also higher at noon. The worst performing index is the Financials Excluding Real Estate Investment Trusts sector, down 83 points to just over 5,000. Shares in Westpac dropped 2.53% to $22.69. Shares in Commonwealth Bank and QBE Insurance are also lower at midday.
To New Zealand now and the NZSX50 is down 6 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock down 0.48% to $2.06 followed by; Fletcher Building, Rubicon and Westpac Banking.
To gold and the dollar: Gold is trading at US$1204 an ounce and the Aussie dollar is trading at 90.87 US cents.
