The Australian share market is in the red at noon, despite a positive close on Wall Street after a turbulent session. Stocks fell at open, stepped briefly onto positive ground but are again lower. Strength in telco and gold stocks has failed to offset weakness among the big banks and energy stocks.
The S&P/ASX200 index has lost 2 points and is 4,267 at noon. On the futures market the SPI is 10 points lower.
Economic news
RP Data-Rismark has reported that house prices continued to fall last month. Capital city home prices fell 0.6 per cent in July, following a fall of 0.3 per cent the month before. In the first seven months of this year capital city home prices were down 3.4 per cent, pushing the average price of a capital city home to $455,000.
Company news
New Hope Corporation Limited (ASX:NHC) says its full year profit, before non-recurring items, is likely to reach up to $150 million for the year to July 31, 2011. Net profit, which includes gains from its Arrow Energy and New Lenton project purchases, is forecast to reach up to $503 million, jumping from $184 million the year before. The Queensland-focused coal producer will release its final full year results on September 20, 2011. Shares in New Hope Corporation have eased 0.2 per cent and are trading at $5.09.
Shares in Gryphon Minerals Limited (ASX:GRY) have gained after the gold developer flagged plans to boost the size of its Banfora Gold project in West Africa. Following the completion of an independent preliminary open-pit engineering assessment Gryphon is forecasting gold production of more than 180,000 ounces per year. Gryphon will now move into detailed feasibility studies that are expected to be completed by the middle of 2012. Shares in Gryphon Minerals have gained 5.42 per cent and are trading at $1.75.
Best and worst performers
The best performing sector is Telco Services, 12 points higher at 1,040. Shares in Hutchison Telecommunications have risen 3.13 per cent and trading at $0.066. Shares in Telstra and SingTel are also stronger. The worst performing sector is Energy shedding 150 points to 13,400. Shares in Petsec Energy have dropped 5.88 per cent and trading at $0.16. Shares in Whitehaven Coal and Nexus Energy have also retreated.
New Zealand
The NZSX50 is 16 points lower. 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 7.33 per cent at $2.53 followed by Telstra, Westpac and Fletcher Building.
Gold and the dollar
Gold is trading at $US1,832 an ounce. The Australian dollar is buying $US1.0667 cents.
