Australian stocks are slightly higher at midday despite disappointing news out of Europe and energy stocks dragging the market lower.
The S&P/ASX200 index is up 11 points to 4,496 at noon. On the futures market the SPI is up 2 points.
Australian economic news
The Commonwealth Bank’s Business Sales Indicator (BSI) increased by only 0.02 per cent in trend terms, showing that consumer spending stabilised in May, led by entertainment spending.
European economic news
Euro zone finance ministers have postponed a final decision on extending more than $16 billion in emergency loans to Greece until next month. It has been decided that Athens would first have to introduce harsh austerity measures.
Company news
Caltex Australia Ltd (ASX:CTX) released its Refiner Margin Update and the market responded to the news by dumping the stock in early trade. Caltex said refining margins have dropped sharply and first-half profit will fall by up to 39 per cent. A surge in crude oil prices and the strong Australian dollar contributed to the downgrade. Shares in Caltex are down 6.5 per cent at noon and are trading at $10.64.
Leighton Contractors, a wholly owned subsidiary of Leighton Holdings Ltd (ASX:LEI), in consortium with GE has been awarded a $130 million contract for a wind farm development 40 kilometres south-east of Geraldton in Western Australia. The development is expected to generate 55 Megawatts of renewable electricity, which is enough energy to power 35,000 homes. The wind farm is due for completion by November 2012. Shares in Leighton Holdings are down 0.1 per cent at $20.98.
Sectors
The best performing sector is Telco Services gaining 8 points to 1,049. Shares in Singapore Telecommunications Ltd gained 0.87 per cent and are trading at $2.32. Shares in Telstra Corporation and Telecom Corp of New Zealand are also higher at noon.
The worst performing sector is Energy falling 115 points to 14,804. Caltex Australia Ltd (ASX:CTX) shares plummeted as mentioned earlier. Riversdale Mining Ltd and Woodside Petroleum Ltd shares are also lower at noon.
New Zealand
The NZSX50 is up 14 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 0.42 per cent at $2.39 followed by Fletcher Building, ANZ and Telstra.
Gold and the dollar
Gold is trading at $US1,540 an ounce and the Aussie dollar is buying $US1.0598 cents.
