The local share market is in the red at midday after news that Rio Tinto and BHP Billiton have decided to walk away from their planned iron ore joint venture in the Pilbara. A mixed lead from Wall St, profit taking and the Aussie dollar briefly touching parity with the US dollar are also putting pressure on the market today.
The S&P/ASX200 index is down 20 points at 4,669 and on the futures market, the SPI200 is down 25.
In economic news: Data released by the ABS today shows that seasonally adjusted sales in new motor vehicles rose 0.9% in September from the month before. In trend terms sales fell 0.3% from August.
To company news: Australian Agricultural Company Ltd (ASX:AAC) has appointed Phil Beale as chief financial officer, effective from February 1, 2011. Mr Beale will take over from current CFO Kerry Parker who will resign in November this year. The beef producer says Mr Beale is currently based in the Middle East where he is CFO for a property development joint venture, and has previously held the position of CFO with Australand Property Group in Sydney. Shares in Australian Agricultural Company are 0.33% higher at $1.525.
Development and contracting company Leighton Holdings Ltd (ASX:LEI) has lodged a submission with the Australian Securities and Investments Commission to protect the interests of its minority shareholders in response to a takeover bid for its German parent Hochtief. Chairman David Mortimer says Leighton’s independent directors are focussed on assessing the bid made by Spanish builder ACS, and responding to it in a way which protects and enhances the value for Leighton’s many stakeholders and specifically its minority shareholders. Shares in Leighton Holdings are 0.61% stronger at $37.67.
Turning now to market indices: Majority of sectors are in the red at midday. The only sector in the black at midday is Telco Services, with the index up 6 points to 929. Shares in Enerji are up 2.5% to just over 4 cents. Shares in Singtel and Telstra are also higher.
The worst performing sector at midday is Utilities, with the index down 52 points to 4,383. Shares in Challenger Infrastructure Fund have dropped 2.08% to $1.175 cents. Shares in Duet Group and AGL Energy are also lower at noon.
To New Zealand now, the NZSX50 is up 7 points. Taking a look at the top 4 stocks by turnover: topping the list is Telecom of New Zealand with stock up 0.48% at $2.08, followed by Fletcher Building, Telstra and Sky City Entertainment Group.
To gold and the dollar: Gold is trading at $1361 US an ounce and the Aussie dollar is trading at 98.63 US cents.
