The Australian share market is almost one per cent lower at midday, following a weak lead from Wall St with negative US economic news dragging local stocks lower.
The S&P/ASX200 index is down 43 points at 4,436 and on the futures market, the SPI200 is down 44.
To company news: Wheat exporter AWB Ltd (ASX:AWB) has announced that it has agreed to proceed with Agrium’s proposed takeover, in a deal valuing AWB at $1.24 billion. Both companies have executed a share implementation agreement in which Canadian agribusiness Agrium will acquire all of the issued capital of AWB at $1.50 per share. AWB is required to give three days clear notice to GrainCrop (ASX:GNC) under a merger implementations deed previously agreed upon, before AWB can change or withdraw its recommendation of its previously proposed merger with GrainCorp. Shares in AWB are 2.41% up at $1.485.
Foster’s Group Ltd (ASX:FGL) says that non-executive director Christine Nixon, the former Victorian Police Chief, will resign on the 31 August. Ms Nixon joined the board controversially in April following criticism of her leadership throughout the Victorian bush fires in 2009. Her departure will enable Foster’s to recruit new directors ahead of its planned demerger in the following year. Shares in Foster’s Group are 0.17% down at $5.79.
Turning now to market indices: The best performing index Consumer Staples sector, up 28 points to 7,837. Shares in AWB as mentioned before. Shares Coca-Cola Amatil and Tassel Group also higher at noon. The worst performing index is the Health Care sector, down 108 points to 7,874. Shares in Biota Holdings dropped 2.63% to $0.925. Shares in Primary Healthcare and Sonic Healthcare are also lower at midday.
To New Zealand now and the NZSX50 is down 22 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list with stock up 2.86% at $2.04 followed by; Guinness Peat Group, ANZ Banking Group and Fletcher Building.
To gold and the dollar: Gold is trading at $1231 US an ounce and the Aussie dollar is trading at 89.17 US cents.
