Following weak overseas leads, the Australian share market has sagged 0.3 per cent at noon. As investors assess the fallout from the Japanese earthquake amid news that a third explosion has struck a Japanese nuclear power plant. Locally the sell-off of uranium stocks has continued, and all sectors are currently trading in the negative territory.
The S&P/ASX200 index has lost 20 points and is 4,607 at noon. On the futures market the SPI down 5 points.
Economic news: The Australian Bureau of Statistics has reported that sales of new motor vehicles in Australia increased 0.2 per cent in February, with 84,122 new cars sold in the month.
Company news: Tasmanian forestry company Gunns Ltd (ASX:GNS) has confirmed that its current sales commitments to the Japanese market are mainly to mills outside of the regions directly affected by the earthquake. Gunns says it is continuing to assess the impact of the latest events in Japan, but at this stage the Nippon Paper Industry mills appear to have been hit the worst, to whom Gunns is not a significant supplier. Yesterday shares in Gunns shed 12.5 per cent at close, but have lifted today since the announcement. Shares in Gunns have risen 3.06 per cent at noon and are trading at $0.505.
Leighton Holdings Ltd (ASX:LEI) says its 45 per cent owned unit, the Al Habtoor Leighton Group, has scored a $600 billion hospital project in Abu Dhabi in the Middle East. The joint venture with Murray and Roberts is for the contsruction of a hospital due for completion in 2014. The general hospital is expected to provide a cost-effective alternative for patients who previously had to seek specialised care overseas. Shares in Leighton Holdings have slipped 0.82 per cent and are trading at $28.86 at noon.
Best and worst performers: All are trading in the red. The sector with the smallest losses is Materials easing 3 points to 13,362. Shares in Focus Minerals have improved 3.85 per cent and trading at just over $0.08. Shares in Afrafura Resources and Gunns have also risen at midday. The worst performing sector is Consumer Discretionary, dropping 13 points to 1,448. Shares in Austar United Communications have dropped 2.7 per cent to $1.26. Shares in Pacific Brands and Domino’s Pizza Enterprises have also sagged at midday.
To New Zealand: The NZSX50 has lost 2 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 up 0.5 per cent at $1.995 followed by ANZ, Telstra and Fletcher Building.
To gold and the dollar: Gold is trading at $US1424 an ounce and the Aussie dollar is buying $US1.0094 cents.
