Aussie shares are half a percent lower at noon, despite US stock closing stronger on positive housing data. Locally financials are dragging the market lower with all major banks trading in the red.
The S&P/ASX200 index is down 19 points at 4,691 and on the futures market, the SPI200 is down 21.
To company news: Ahead of the RBA’s verdict on interest rates next week, Commonwealth Bank of Australia’s (ASX:CBA) CEO Ralph Norris has cautioned Australian banks are likely to experience higher funding costs in the short to medium term, a warning that might lead to interest rate increases over and above any official rate rises. In an address at the bank’s annual meeting, Mr Norris said the operating environment is challenging, highlighted by continuing global economic uncertainty, the impact of regulatory change and competitive pressures. However despite the subdued outlook Commonwealth Bank managed a 42 per cent increase in its full year earnings recording a $6.1 billion profit in the 2010 financial year. Shares in Commonwealth Bank are 0.75% lower at $50.57.
Stockland (ASX:SGP) has announced that all Aevum Ltd (ASX:AVE) directors have now accepted Stockland’s offer of $1.80 per share, and the property developer has urged remaining Aevum shareholders to follow suit. In September Stockland achieved a majority stake in its takeover target, retirement village operator Aevum, with the stake now increasing to 82.83 per cent. Stockland managing director Mathew Quinn says the offer is scheduled to close at the end of this week and no extension has been granted. Shares in Stockland are 1.04% down at $3.79.
Turning now to market indices: Most sectors are in the red at noon. The best performing sector is Telco Services with the index up 5 points to 917. Shares in iiNet are up 2.22% to $2.76. Shares in Telstra and Macquarie Telecom Group are also higher at noon.
The worst performing sector at midday is Consumer Discretionary, with the index down 11 points to 1,560. Shares in Mitchell Communication Group have dropped 4.4% to $1.195. Shares in OrotonGroup and Tatts 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: Topping the list is Telecom of New Zealand with stock down 0.96% at $2.07 followed by Westpac, Fletcher Building and Contact Energy Group.
To gold and the dollar: Gold is trading at $1343 US an ounce and the Aussie dollar is trading at 99.24 US cents.
