The Australian share market is .5 per cent lower at midday, following negative leads from overseas markets, with declines in the big banks and miners weighing on the market. As the nation’s newly announced minority government takes the reins, investors will be watching developments on the mining tax and broadband network. The S&P/ASX200 index is down 25 points at 4,549 and on the futures market, the SPI200 is down 28.
In economic news: The ABS reports housing finance commitments for owner occupied housing increased 1.7 per cent in July to 47,511. Total housing finance value increased 0.7 per cent to $20.854 billion in the period.
To company news: Fortescue Metals Group (ASX:FMG) will this week commence drilling at the Wyloo project in the Pilbara of Western Australia. As manager of the joint venture project Fortescue can earn up to an 80 per cent interest in any iron ore discovered. Shares in Fortescue Metals Group are 1.01% down at $4.88.
Mirabela Nickel Ltd (ASX:MBN) has launched a share placement to raise between US$135 million and US$165 million. Proceeds will be put towards paying down debt, increasing working capital and to fund the expansion of its Santa Rita project in Brazil. The miner says it will also raise US$7 million through a share placement to certain directors and up to US$10 million from a share purchase plan. Shares in Mirabela Nickel are in a trading halt, and last traded at $1.84.
Turning now to market indices: The best performing sector is the Telco Services sector, with the index up 11 points to 995. Shares in Macquarie Telecom are up 1.42% to $7.15. Shares in Telstra are higher while shares in Singtel are flat. The worst performing sector at midday is the Financials Excluding Real Estate Investment Trusts sector, with the index down 59 points to 5,020. Shares in AXA Asia Pacific Holdings dropped 2.85% to $5.45. Shares in Henderson Group and Westpac also lower at midday.
To New Zealand now and the NZSX50 is 9 points lower. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand is top of the list with stock steady at $2.13 followed by; Ryman Healthcare, Westpac and Fisher and Paykel Healthcare.
To gold and the dollar: Gold is trading at $1256 US an ounce and the Aussie dollar is trading at 91.2 US cents.
