The Australian share market is trading in the red, despite Wall St closing higher on upbeat employment data. Local shares are 0.2 per cent down at noon, with concerns mounting over the impact that Queensland’s flooding crisis will have on company earnings. Coca Cola Amatil has become the latest to issue a second half profit downgrade, due to colder summer weather and flooding in Queensland.
The S&P/ASX200 index has dropped 7 points and is 4,708 at noon. On the futures market the SPI is 15 points lower.
Economic news: The Australian Bureau of Statistics has shown Australian building approvals lost 4.2 per cent to 13,158 units in November, seasonally adjusted, from 13,728 units in the month before. Building approvals were 9.9 per cent lower for the year to November. While the Australian Industry Group/Commonwealth Bank Australian Performance of Services Index has delivered a steady read, lifting a mere 0.2 in December to 46.4. A read below 50 represents contraction in activity.
Company news: Newcrest Mining Ltd’s (ASX:NCM) Hidden Valley joint venture has denied nuisance claims by landowners in Papua New Guinea. Newcrest and South African company Harmony Gold Mining are equal partners in the Hidden Valley JV that is run by Morobe Mining. In a statement to the exchange Morobe Mining says it will vigorously defend the litigation should it proceed. Shares in Newcrest Mining have fallen 1.58 per cent and are $39.21.
Campbell Brothers Ltd (ASX:CPB) is ramping up its expansion into the US, announcing that its laboratory services business, the ALS Group, has bought Analytical Laboratory Services Inc for around $11 million. Campbell Brothers says the latest acquisition will form the Northern American Environmental Division of ALS. Shares in Campbell Brothers have slipped 0.42 per cent and are $39.86 at noon.
Market indices: The best performing sector is Utilities with the index rising 16 points to 4,405. Shares in APA Group have added 1.25 per cent to $4.06. Shares in SP AusNet and AGL Energy have also lifted at noon. The worst performing sector at midday is Financials Excluding Real Estate Investment Trusts, falling 15 points to 5,008. Shares in ANZ Banking Group have eased 0.86 per cent and are $22.98. Shares in QBE Insurance Group and Commonwealth Bank have also dropped at midday.
To New Zealand: The NZSX50 is 6 points higher. Taking a look at the top 4 stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock 0.46 per cent up at $2.18; followed Fletcher Building, ANZ and The Warehouse Group.
To gold and the dollar: Gold is trading at $US1,376 an ounce and the Aussie dollar is buying $US1.0009.
