The Australian share market opened weaker this morning following Wall Street’s finish in the red after mixed economic data emerged from the United States. Shares were mostly lower at midday, led by the banks, on concern over Europe’s debt crisis and after Standard and Poor’s said it may cut Portugal’s credit ratings.
The S&P/ASX200 index is 6 points weaker at 4,579 and on the futures market the SPI200 is down 7 points.
Company news: Woodside Petroleum Ltd (ASX:WPL) has delayed the planned start-up of its Pluto LNG project by six months and has also revealed a $1 billion cost blowout as a result of faulty engineering work. The project, which is expected to produce 4.3 million tonnes of liquefied natural gas per year, was due to start in February 2011 but is now not going start production until August. Woodside has also revised project costs, which have increased to $14 billion from $13.1 billion. The company has blamed a contractor for the delay. Shares in Woodside are down 1.88 per cent to $41.16.
Leighton Holding Ltd’s (ASX:LEI) parent and major shareholder, German construction group Hochtief is one step closer to being acquired by Spanish construction giant ACS. Germany’s financial regulator, BaFin, gave ACS’s offer for Hochtief the go-ahead late on Monday. ACS, which currently owns just under 30 per cent of Hochtief, is going to issue offer documents to target shareholders today. Shares in Leighton are down 0.32 per cent at $31.40.
Turning to market indices, and the best performing sector is Materials with the index up 89 points to 13,315. Shares in Oroya Mining are up 33.33 per cent to $0.008. Shares in Echo Resources and Gladiator Resources are also higher. The worst performing sector at midday is Utilities with the index dropping 38 points to 4,338. Shares in Viridus are down 14.29 per cent to $0.012. Shares in Challenger Infrastructure Fund and Energy World Corp are also lower at midday.
To New Zealand: The NZSX50 is down 4 points. Taking a look at the top 4 stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock steady at $2.16; followed ANZ, Fischer & Paykel Healthcare and Fletcher Building Group.
Gold and the dollar: Gold is trading at $US1,384 an ounce and the Aussie dollar is buying 96.01 US cents.
