Midday: Aussie stocks lower

Market Reports

The local share market is lower at midday following a negative lead from Wall St overnight with the banks and miners falling on concern for the health of the global economic recovery. The S&P/ASX200 index is down 25 points at 4,427 and on the futures market, the SPI200 is down 32.

In local economic news: The ABS says retail sales rose 0.7% in July. Expectations were for a 0.4% rise. The Bureau of Statistics also reported a 1.3% rise in government spending in the second quarter, a 2.3% jump in building approvals for the month of July, and that Australia had an account deficit of $5.64 billion in the second quarter. In other economic news, the RBA says private credit rose 0.1% in July.

To company news: Mining giant BHP Billiton Ltd (ASX:BHP) has hosed down speculation that it will offload some of Potash Corp’s assets if its $38.6 billion hostile bid for the company is successful. Reports are circulating that the miner may look to divest assets that are not key to its strategy of becoming a dominating force in the global potash industry. Reuters reports that Canadian fertilizer maker Agrium could be a potential buyer, having already expressed its interest in Potash Corp’s nitrogen and phosphate assets. Shares in BHP Billiton fell 1.56% to $37.28.

Medical device maker Unilife Medical Solutions Ltd (ASX:UNS) has posted a wider loss for fiscal 2010 compared to last year on a fall in revenue and costs relating to its move to the US. For the 12 months to June 30, 2010, the company reported a net loss of US$29.75 million compared to US$517,000 in fiscal 2009. Revenue of US$11.4 million was down 43 per cent on last year’s result of US$19.98 million. The company, who redomiciled to the US in January this year, says the increase in its net loss was also due to significantly higher payroll and related costs during the year after boosting its workforce at its Lewisberry, Pennsylvania facility. Shares in Unilife Medical Solutions dropped 3.92% to $0.98.

Turning now to market indices: The best performing sector at midday is the Health Care sector, with the index up 27 points to 8,169. Shares in Ansell are up 2.13% to $13.45. Shares in Ramsay Health Care and CSL also higher.

The worst performing sector at midday is the Materials sector, with the index down 104 points to 11,746. Shares in Mirabela Nickel dropped 3.97% to $1.695. Shares in Equinox Minerals and Mt Gibson Iron also lower at midday.

To New Zealand now and the NZSX50 is 7 points lower. Taking a look at the top 4 stocks by turnover: At the top of the list is Telecom of New Zealand with stock steady at $2.05 followed by ANZ, Telstra, and Fletcher Building.

To gold and the dollar: Gold is trading at $1237 US an ounce and the Aussie dollar is trading at 89.33 US cents.


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