The Australian share market is steady at noon, despite strong offshore leads. Aussie shares have been unable to hold onto gains as the latest read on our economic growth has come in lower than expected. Also, shares in Downer EDI have dropped over 20 per cent, following news the engineering company will take a $250 million provision related to its Waratah train project.
The S&P/ASX200 index has firmed 2 points and is 4,810 at noon. On the futures market the SPI up 21 points.
Economic news: The Westpac-Melbourne institute index of economic activity rose 3.2 per cent in November, falling from 3.5 per cent in October.
Company news: QBE Insurance Group Ltd (ASX:QBE) is expanding into the financial institutions sector, announcing that it has agreed to acquire the Australian operations of US-owned CUNA Mutual Group. While the cost of the deal has not been disclosed, QBE says the purchase will boost its share of the Australian credit union and community based financial institution sector and generate $80 million of gross written premium in 2011. The acquisition is due to be completed in March, pending regulatory approval. Shares in QBE Insurance Group are up 0.96 per cent at $17.91.
Beach Energy Ltd (ASX:BPT) has posted a 16 per cent rise in fourth quarter revenue to $142.4 million on the back of higher realised oil prices. However, the gas exploration company recorded a seven per cent decline in production for the period. Beach attributes the fall in production to unfavourable weather on Cooper Basin oil and gas production in addition to the suspension of production from the Basker-Manta-Gummy project in Bass Strait. Shares in Beach Energy are down 1.18 per cent at $0.84.
Turning to market indices: The best performing sector is Materials with the index adding 51 points to 13,991. Shares in Cazaly Resources have risen 4.17 per cent to $0.375. Shares in Sundance Resources and Avoca Resources have also advanced at noon. The worst performing sector at midday is Consumer Discretionary, losing 11 points to 1,538. Shares in Pacific Brands have eased 2.8 per cent and are $1.04. Shares in News Corporation and Kresta Holdings have also fallen at midday.
To New Zealand: The NZSX50 is down 3 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 $2.31; followed by Methven, Kathmandu Holdings and Sanford.
To gold and the dollar: Gold is trading at $US1,344 an ounce and the Aussie dollar is buying $US1.0003.
