The Australian share market has slipped into the red after seven days of straight gains. Following mixed leads Aussie shares have fallen 0.2 per cent at noon, with Rio Tinto Ltd
(ASX:RIO) pulling the materials sector down after the global miner announced a smaller than expected $5 billion share buy-back. While the Telco’s have reversed yesterday’s losses and jumped to the best performing sector at midday.
The S&P/ASX200 index has eased 12 points and is 4,903 at noon. On the futures market the SPI down 13 points.
Company news: Transfield Services Ltd (ASX:TSE) has scored a $540 million contract extension to provide facilities management and cleaning services at public schools, TAFE colleges and government buildings in New South Wales. The latest five-year contract has an option for a further two year extension, and work is scheduled to begin on 1 July this year. Earlier this week Transfield also announced that it has won a $1.1 billion contract with a new client, SA Water. As part of a joint venture with Degremont and Suez Environment, Transfield will operate and maintain water and wastewater services for the City of Adelaide over the next 10 years. Shares Transfield Services have lifted 0.31 per cent to $3.28.
Australian regulators have cleared Fletcher Building Ltd’s (ASX:FBU) $797 million takeover offer for Crane Group Ltd (ASX:CRG). Dual listed in both Australia and New Zealand, Fletcher says that the Australian Competition and Consumer Commission has given its green light, satisfying a key condition of the company’s bid. Fletcher advises that its stake in Crane has now grown to 18.8 per cent and the company expects more shareholders to take their lead from the ACCC’s endorsement. Shares in Fletcher Building have firmed 0.16 per cent and are trading at $6.22 at noon.
Market indices: The best performing sector is Telco Services with the index rising 17 points to 1,004. Shares in Reverse Corp have added 3.49 per cent to $0.089. Shares in Telstra and iiNet are also stronger at noon. The worst performing sector is Consumer Discretionary, falling 7 points to 1,521. Shares in JB Hi-Fi have eased 2.28 per cent and are $18.83. Shares in Kresta Holdings and Webjet are also weaker at midday.
To New Zealand: The NZSX50 is up 11 points. Taking a look at the top 4 stocks by turnover, Guinness Peat Group is at the top of the list with stock is 10 per cent higher and trading at $0.77; followed by Telecom of New Zealand, ANZ and Westpac.
To gold and the dollar: Gold is trading at $US1,365 an ounce and the Aussie dollar is buying $US1.0031.
