The Australian share market was trading flat at midday despite receiving mostly positive leads from offshore trading overnight such as the extension of the Bush-era tax cuts and more hopeful signs on European debt levels. All the major banks were lower at mid-day.
The S&P/ASX200 index is down 8 points to 4,719, while on the futures market the SPI is down 10 points.
Centro Retail Group Ltd’s (ASX:CER) retail trust arm says it expects first half profit in the 2010-11 financial year to be 20 per cent below last year’s result of $81 million. The company attributes the downgrade in profit to prevailing market and credit conditions in both the US and Australia. Centro Retail Trust says higher interest rates in Australia coupled with lower net operating income in the US because of the appreciation of the Australian dollar will affect the firms’ operating performance and cash flow. Shares in Centro Retail Group are down 4 per cent to $0.24.
The Commonwealth is lending the NSW Government up to $160 million to ensure asbestos victims continue to be compensated. However, Prime Minister Julia Gillard says the loan will not absolve James Hardie Industries Ltd (ASX:JHX) from liability. Under an agreement between the Commonwealth and NSW, the State Government will contribute an equal amount in funding to Asbestos Injuries Compensation Fund every time it draws down from the federal loan. The fund was created in 2005 in order to compensate people who made legitimate asbestos-related claims against the company in Australia. Shares in James Hardie are down 0.64 per cent to $6.17.
Turning to market indices, and the best performing sector is Utilities with the index up 7 points to 4,452. Shares in Transfield Services Infrastructure Fund have advanced 0.77 per cent to $0.655. Shares in AGL Energy and APA Group are also higher. The worst performing sector at midday is Consumer Discretionary with the index down 8 points to 1,518. Shares in ASF Group are down 14.29 per cent to $0.12. Shares in KIP McGrath Education Centres and Two Way Limited have also dropped at midday.
New Zealand: The NZSX50 is up 12 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 up 0.47 per cent at $2.16; followed by Sky Network, Fletcher Building Group and Fisher and Paykel Healthcare.
Gold and the dollar: Gold is trading at $US1,401 an ounce and the Aussie dollar is buying 98.45 US cents.
