Despite positive leads the Australian share market started the week slightly lower, with the resource sector dragging. Shares in Woolworths Ltd (ASX:WOW) have firmed after the supermarket giant posted 3.3 per cent growth in same store Australian food and liquor sales in the third quarter and reaffirmed earnings guidance.
The S&P/ASX200 index has lost 4 points and is 4,848 at noon. On the futures market the SPI is flat.
Economic news: The Housing Industry Association – RP Data residential land report has revealed that volume of land sales fell in the last three months of 2010. December quarter land sales fell to 11,500 lots, from 12,500 lots the quarter before and 40 per cent down from the December quarter in 2009. The quarterly fall was the largest since the survey began in 2001.
Company news: Coal seam gas prospector Dart Energy Ltd (ASX:DTE) is gearing up to raise $100 million for an accelerated drilling program of its assets in Australia, Asia and Europe. The fully underwritten 5 for 22 accelerated non-renounceable entitlement offer is priced at $0.75 per share, a 12.8 per cent discount to Dart Energy’s last traded price. CEO Simon Potter says the capital raising will enable the company to rapidly mature its resource base and become commercial. Shares in Dart Energy are in a trading halt and last traded at $0.86.
Tabcorp Holdings Ltd (ASX:TAH) has confirmed that its proposed $5.2 billion demerger of its casinos business will be put to a shareholder vote on 1 June, 2011. The gaming company’s directors have unanimously recommended the deal that could see its casinos business list on the Australian Securities Exchange as Echo Entertainment Group Ltd. The Wagering, Gaming and Keno businesses would then continue as Tabcorp Holdings. Reuters reports that Tabcorp’s BBB+ Standard and Poor’s rating is currently on CreditWatch negative pending the outcome of the vote, and, is likely to fall one notch to BBB if the demerger proceeds. Shares in Tabcorp Holdings have added 0.79 per cent and are trading at $7.62 at noon.
To the best and worst performers: The best performing sector is Health Care, rising 95 points to 8,932. Shares in Sigma Pharmaceuticals have lifted 2.78 per cent and trading at $0.37. Shares in CSL and Ramsay Health Care have also gained at midday. The worst performing sector is Materials falling 76 points to 14,332. Shares in Lynas Corporation have dropped 3.95 per cent and are trading $2.43. Shares in Murchison Metals and Arafura Resources are also lower at noon.
New Zealand: The NZSX50 has risen 6 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 3.03 per cent at $2.04 followed by, Fletcher Building, Westpac, ANZ
Gold and the dollar: Gold is trading at $US1,486 an ounce and the Aussie dollar is buying $US1.0544 cents.
