The Australian share market is lower at midday, by almost one and a half percent, following losses from overseas markets and lingering concerns about the global economic recovery.
The S&P/ASX200 index is down 61 points at 4,394 and on the futures market, the SPI200 is down 71 points.
In economic news: The Australian Bureau of Statistics labour force data for July has shown Australia’s unemployment rate increased to 5.3% for the month, up from 5.1% reported in June. The Melbourne Institute, survey of consumer inflationary expectations revealed the median inflation rate dropped to 2.8% in August, down from 3.3% the month before and the fourth consecutive monthly drop. The Westpac-Melbourne Institute survey of consumer unemployment expectations dropped 10.2% in August to a read of 11.56, after a 6.9% fall in July.
To company news: Airport operator Map Group (ASX:MAP) says that it anticipates selling its 16% interest in a Mexican airport operator for US$207 million. CEO Kerrie Mather says the company has decided to exit the investment as soon as practically possible, having determined that Map will not be able to utilize its management model. Earlier this week Map advised that its foreign ownership level has fallen to 38.6% from the 39% previously advised. Shares in Map Group are steady at $3.01.
The battle to takeover North Queensland Metals Ltd (ASX:NQM) has progressed further today, with the explorer issuing a statement from Heemskirk Consolidated Ltd (ASX:HSK) outlining its bid. Both Heemskirk and Conquest Mining Ltd (ASX:CQT) have submitted offers for North Queensland, with the North Queensland earlier recommending the offer from Heemskirk. Heemskirk today says the its offer remains superior to the hostile Conquest offer, outlining that the Conquest offer dilutes shareholders interest in the Pajingo Gold Operation. Shares North Queensland Metals are flat at $0.32.
Turning now to market indices: Most indices are in the red at midday: Though the best performing index is the Utilities sector, up 17 points at 4,220. Shares in Spark Infrastructure are 0.86% higher at $1.175. Shares in AGL Resources and APA Group are also higher at noon. The worst performing index is the Telcos sector, down 86 points to just over 1,014. Shares in Telstra dropped 8.62% to $2.97. Shares in Energji and iiNet are also lower at midday.
To New Zealand now and the NZSX50 is down 35 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock down 1.96% to $2.00 followed by; Fisher and Paykel Healthcare, Fletcher Building and Goodman Property Group.
To gold and the dollar: Gold is trading at US$1199 an ounce and the Aussie dollar is trading at 89.32 US cents.
