Following strong negative leads the Australian share market opened weaker and is 0.2 per cent lower noon. Political unrest in Libya continues to weigh on the market, together with some disappointing earnings reports and news that New Zealand’s latest earthquake costs could exceed $12 billion.
The S&P/ASX200 index has eased 6 points and is 4,850 at noon. On the futures market the SPI down 9 points.
Company news: Insurance Australia Group Ltd (ASX:IAG) says its reinsurance cover means that $40 million is the maximum financial impact the group will incur as a result of the 6.3 magnitude earthquake that yesterday struck Christchurch in New Zealand. Australia’s largest home and car insurer has sliced its full-year insurance margin guidance to between 8 to 10 per cent, from a previously forecast range of between 9 to 11 per cent. IAG says this revision includes an increased natural peril cost assumption of $540 million, up from an earlier $500 million, and the anticipated cost of reinstating its catastrophe reinsurance cover. Shares in IAG are steady at $3.63 at noon.s
Suncorp Group Ltd (ASX:SUN) has posted a 39 per cent drop in first half net profit, as it battled with extreme weather conditions in its key market of Queensland. The insurer and bank says net profit in the six months to 31 December came in at $223 million, impacted by flooding throughout Australia and goodwill writedowns from asset sales. In the same period Suncorp says insurance net profit was $292 million, under the $347 million booked the same time a year earlier. Suncorp has declared a fully franked interim dividend of 15 cents per share. Shares in Suncorp Group have lifted 0.58 per cent at noon and are trading at $8.63.
To the best and worst performers: The best performing sector is Telco Services, adding 6 points to 955. Shares in Amcom Telecommunications have gained 1.59 per cent and are $0.32. Shares in Hutchison Telecommunications and Telstra have also firmed at midday. The worst performing sector is Consumer Discretionary, falling 9 points to 1,532. Shares in West Australian Newspapers Holdings have plunged 11.67 per cent to $5.60. Shares AMA Group and Flight Centre have also fallen at midday.
To New Zealand: The NZSX50 has added 1 point. Taking a look at the top 4 stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 0.93 per cent at $2.14 followed by Fletcher Building, Sky Network Television and Guinness Peat Group.
To gold and the dollar: Gold is trading at $US1397 an ounce and the Aussie dollar is buying $US1.0028 cents.
