Aussie stocks have taken a breather after yesterday’s good gains, trading lower at midday, following a flat lead from Wall St overnight on concern over probes into foreclosures in the banking sector. Global miner Rio Tinto, however, is bucking the trend trading higher after reporting record iron ore production in the September quarter.
The S&P/ASX200 index is down 28 points at 4,671 and on the futures market, the SPI200 is down 28.
To company news: Aussie veterinary products wholesaler Provet Holdings Ltd (ASX:PVT) is to merge with US healthcare products company Henry Schein in a deal worth $93.2 million. Henry Schein is offering to acquire Provet for $2.14 a share which is a 35 per cent premium to its last closing price before the merger announcement. The deal which requires approval from Provet shareholders and regulators is expected to be finalised by the end of the year. Henry Schein has also indicated its intention to retain Provet’s existing management team. Shares in Provet Holdings are 32.28% higher at $2.09.
Coal-based energy company MetroCoal Ltd (ASX:MTE) is to place 35 million shares at an issue price of $0.30 a share to raise $10.5 million. Proceeds of the capital raising will be used to accelerate exploration across its tenement portfolio including a focus on the Bundi project area. Funds will also go towards early commitments for planned infrastructure participation, namely at the expansion of Stage 2 of the Wiggins Island port in Gladstone. Shares in MetroCoal are 4.48% weaker at $0.32.
Turning now to market indices: Majority of sectors are in the red at midday. The best performing sector is Telco Services, with the index up 4 points to 927. Shares in Amcom Telecom are up 2.94% to $0.35. Shares in Telecom of New Zealand and Telstra are also higher.
The worst performing sector at midday is Utilities, with the index down 50 points to 4,412. Shares in Energy Developments have dropped 2.3% to $2.55 cents. Shares in AGL Energy and APA Group are also lower at noon.
To New Zealand now, the NZSX50 is up 4 points. Taking a look at the top 4 stocks by turnover: Telecom of New Zealand heads the list, stock up 1.44% at $2.11, followed by Fletcher Building, ANZ, and Westpac.
To gold and the dollar: Gold is trading at $1377 US an ounce and the Aussie dollar is trading at 99.08 US cents.
