The Australian share market was trading slightly lower at midday, as weak metal prices coupled with monetary tightening concerns in China brought the major miners down. Mining giants Rio Tinto and BHP Billiton were both lower at midday as was gold producer Newcrest. The banks were generally higher, with Westpac and Commonwealth Bank leading the gains.
The S&P/ASX200 index is down 10 points to 4,774. On the futures market the SPI is down 9 points.
Company news: Leighton Holdings Ltd (ASX:LEI) subsidiary Thiess, has won a $1.01 billion contract extension to operate the Mt Own coal mine located in New South Wales’ Hunter Valley. The new contract extension with Xstrata Coal runs from the October 2011 till the end of 2015, with an option to extend by a further six months. Shares in Leighton Holdings are down 1.08 per cent at $32.94.
Downer EDI Ltd (ASX:DOW) has signed a five-year agreement with Idemitsu Australia Resources valued at $900 million. As per the agreement, Downer will provide mining services at Idemitsu’s Boggabri open-cut coal mine located in Gunnedah, New South Wales. The project will require $114 million of new equipment, which Downer is going to fund through operating cash flow and new finance over the next few financial years. The contract is due to commence in December 2011. Shares in Downer EDI are down 0.21 per cent at $4.71.
Market indices: The best performing sector is Telco Services with the index lifting 7 points to 955. Shares in Big Air Group have gained 2.63 per cent to $0.195. Shares in Telecom of New Zealand and Telstra have also risen at noon. The worst performing sector at midday is Real Estate Investment Trust, dropping 10 points to 849. Shares in Goodman lost 2.27 per cent to $0.645. Shares in ING Office Fund and Dexus have also eased at midday.
New Zealand: The NZSX50 is up 13 points. Taking a look at the top 4 stocks by turnover, Westpac is at the top of the list with stock 0.65 per cent higher at $31; followed by Telecom Corporation of New Zealand, ANZ Bank and Fletcher Building Group.
To gold and the dollar: Gold is trading at $US1,371 an ounce and the Aussie dollar is buying 99.1 US cents.
