Following a cautious lead from Wall St overnight, the local share market is in the red at midday with declines in the miners like major’s BHP and Rio dragging the market down on softer base metals prices.
The S&P/ASX200 index is down 47 points at 4,651 and on the futures market, the SPI200 is down 57.
In economic news: National Australia Bank’s monthly business survey showed that its main measure of business confidence dropped to a read of 10 in September from 11 in August. However the result was well above its long term average of 7. The survey’s measure of business conditions rose to 7 for the month from 5 in August.
To company news: Conquest Mining Ltd (ASX:CQT) is reportedly set to announce a $35 million capital raising to fund the acquisition of a 40 per cent stake in the Pajingo gold mine in Queensland from Heemskirk Consolidated. Meanwhile the company has accrued an 88.28 per cent stake in takeover target North Queensland Metals Ltd (ASX:NQM) who holds the remaining 60 per cent stake in Pajingo. Shares in Conquest Mining are in a trading halt and last traded at $0.505.
And Swiss mining giant Xstrata has extended the offer period of its $428 million takeover bid for Aussie iron ore explorer Sphere Minerals Ltd (ASX:SPH). Xstrata has extended the closing date for its $2.50 all cash offer by 10 days from October 19 to October 29. On Monday, Xstrata held an 8.25% interest in the Aussie exploration and development company who has recommended the offer to shareholders. Shares in Sphere Minerals are 0.8% higher at $2.52.
Turning now to market indices: Most sectors are in the red at noon. The best performing sector is Telco Services with the index up 6 points to 928. Shares in Enerji are up 4.76% to $0.02. While shares in Telstra are higher, shares in BigAir Group are steady at noon.
The worst performing sector at midday is Materials, with the index down 198 points to 12,990. Shares in Gryphon Minerals have dropped 4.83% to $1.38. Shares in Mirabela Nickel and Perseus Mining are also lower at noon.
To New Zealand now, the NZSX50 is up 8 points. Taking a look at the top 4 stocks by turnover: Topping the list is ANZ with stock down 0.32% at $31.50 followed by Telecom of New Zealand, Westpac, and AMP.
To gold and the dollar: Gold is trading at $1351 US an ounce and the Aussie dollar is trading at 98.02 US cents.
