The local sharemarket is weaker at midday, as it continues to fight against the weak offshore leads it received this morning. Investor confidence has been dampened as the US begins to ask – could this be the start of the long-awaited correction?
The S&P/ASX200 index has fallen 32 points and is 4,668 at noon. On the futures market the SPI is 23 points lower.
Company news: Woolworths Ltd (ASX:WOW) has raised $500 million more cheaply than banks, with high expectations the Australian bond market could grow by 50 per cent. Reportedly loan bankers aren’t concerned, expecting little downward pressure on competing loan margins as funding costs remain high. Led by Westpac and ANZ, the deal was closed within three hours of launching, the order book hitting $2 billion. At noon, shares in Woolworths have fallen 0.52 per cent and are trading at $26.81.
Lynas Corporation Ltd’s (ASX:LYC) refinery in Malaysia currently under construction is facing extreme opposition. The $228 million refinery being built by the Australian miner is likely to be strictly regulated as critics voice their concerns about the risk of radioactive pollution. The Malaysian Atomic Energy Licensing Board has given Lynas permission to build the facility, but has not yet granted the operation licence. Shares in Lynas Corporation have firmed 3.27 per cent and are trading at $2.05 at noon.
To the best and worst performers: The best performing sector is Utilities, firming 8 points to 4,145. Shares in DUET Group have added 0.63 per cent and are $1.59. Shares in APA Group and AGL Energy Ltd and have also improved at midday. The worst performing sector is Real Estate Investment Trusts, falling 9 points to 869. Shares in Charter Hall Office have fallen 1.53 per cent to $3.21. Shares in Goodman Group and Westfield Group are also lower midday.
To New Zealand: The NZSX50 is 18 points weaker.
Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 0.79 per cent at $8.79 followed by Telecom Corporation of New Zealand, Westpac and ANZ.
To gold and the dollar: Gold is trading at $US1,413 an ounce and the Aussie dollar is buying $1.0026 US cents.
