Shares fell sharply in morning trade following poor leads from offshore markets and a drop in commodities prices overnight. Further political turmoil in Greece and disappointing economic data out of the US caused much of the anxiety for investors.
Traders were also spooked when Moody’s placed 3 French banks under review for a possible downgrade.
Figures
The S&P/ASX200 index is down 57 points to 4,510 at noon. On the futures market the SPI is down 52 points.
Companies
Newcrest Mining (ASX:NCM) could be eyeing more divestments. Analysts backed the gold producer’s move yesterday to vend two Queensland goldmines into a new entity. The Royal Bank of Scotland says a similar deal was now likely for Bon-ikro. The Bon-ikro mine produces around 86 thousand ounces of gold per annum – or 3 per cent of group production.
Shares in Newcrest are down 0.86 per cent at noon and are trading at $36.68.
And another gold company, St Barbara (ASX:SBM) says its reviewing the merger agreement between Catalpa and Conquest Mining. Catalpa yesterday said it had formally terminated discussions with St Barbara in relation to a proposed unsolicited takeover. The original proposal would have seen Catalpa and Conquest join together – with Newcrest Mining holding a one third stake.
Shares in St Barbara last traded down 4.36 per cent at $1.86 and a half cents.
Stocks and Sectors
To the best and worst performers: All sectors are in the red today...the sector escaping the most damage is the Utilities sector shedding 4 points to 4,357. Shares in Challenger Infrastructure gained 1.94 per cent and are trading at $1.05. Shares in Spark Infrastructure and Duet Group are also higher at noon.
The worst performing sector is the materials sector falling 229 points to 13,000. Shares in Lynas have dropped 3.9 per cent and are trading at $1.97. Fortescue and Bluescope shares are also lower at noon.
To New Zealand: The NZSX50 is down 23 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 1.85 per cent at $2.39 followed by Fletcher Building, the ANZ Bank and Mainfreight.
Gold and the Dollar
To gold and the dollar: Gold is trading at $US1,526 an ounce and the Aussie dollar is buying $US1.0568 cents.
