Australian stocks are trading flat at midday, miners firming but banks and retailers slipping. Investors are weighing up the impact of higher energy costs as oil hits its highest level since mid-2008.
The S&P/ASX200 index has fallen 2 points and is 4,801 at noon. On the futures market the SPI up 7 points.
Economic news: The survey of 200 firms by the Australian Industry Group (AiG) and Commonwealth Bank found a strong expansion in retail sales for February. The performance of services index (PSI) rose 3.2 points to 48.7 in February settling just shy of the 50-mark that separates growth from contraction. The Australian Bureau of Statistics reported a slump in building approvals for January. Total dwelling approvals dropped 16 per cent to 12,342. And the balance on goods and services was a surplus of $1.875 billion in January 2011, a decrease of $143 million on December’s surplus.
Company news: ASX Ltd (ASX:ASX), the operator of the Australian Securities Exchange will soon have a competitor according to The Australian. Three years after its application, Chi-X Global is expected to be given formal permission to start up a rival exchange later this year. The licence application has been gathering momentum on concerns about whether Australia could weather a storm like the “Flash Crash” of May 6th in the United States . Monday’s ASX trading glitch added some weight to the argument. Shares in ASX Ltd have risen 1.43 per cent at noon and are trading at $36.19.
Riversdale Mining Ltd (ASX:RIV) expects to start exporting coking coal from Mozambique by September. That’s according the Dow Jones Newswires. The company aims to start mining coal in March, the construction of the processing plant will be completed by September, and its first coking coal will be “on a ship” that same month. Shares in Riversdale Mining fell 0.4 per cent and are trading at $14.91 at noon.
To the best and worst performers: The best performing sector is Energy rising 162 points to 16,436. Shares in Santos have gained 1.81 per cent and are $14.60. Shares in Woodside Petroleum and Whitehaven Coal also lifted at midday. The worst performing sector is Telco Services, falling 4 points to 950. Shares in Singapore Telecommunications have dropped 1.32 per cent to $2.25. Shares in Telstra and Telecom Corporation of New Zealand have also eased at midday.
To New Zealand: The NZSX50 has risen 4 points. Taking a look at the top four 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, ANZ and Sky Network Television.
To gold and the dollar: Gold is trading at $US1,432 an ounce and the Aussie dollar is buying $1.0154 US cents.
