The Australian share market is in the red at noon, sinking 0.8 per cent, after briefly moving into positive territory following the release of the Reserve Bank of Australia’s meeting minutes for September. Local equities fell at open following weak leads and news Standard & Poor's has cut Italy's sovereign credit rating. Most sectors are lower, weighed down by the miners.
The S&P/ASX200 index is 30 points lower at 4,052. On the futures market the SPI is down 19 points.
Economic news
Ratings agency Standard & Poor's has cut Italy's sovereign credit rating by one notch and kept its outlook on negative. S&P cited “Italy’s weakening economic growth prospects” for the downgrade.
The latest minutes from the Reserve Bank of Australia’s September board meeting have revealed that economic uncertainty prevented the central bank from hiking the official cash rate, which now stands at 4.75 per cent, and keeping inflation in check.
Company news
The Federal Court has cleared Australia's largest grocery wholesaler, Metcash Limited (ASX:MTS), to finalise its $215 million acquisition of Franklins supermarkets from Pick n Pay Retailers. The Australian Competition and Consumer Commission has now lost its appeal it launched to stop the acquisition after refusing to back the deal. The ACCC fears the deal will jeopardise competition in the grocery sector and impact the regulator’s ability to prevent anti-competitive mergers in the future. Shares in Metcash have gained 1.59 per cent and are trading at $4.145.
TPG Telecom Limited (ASX:TPM) has boosted its full year net profit by 40 per cent to $78 million. The telecommunications services provider’s result was aided by subscriber growth in its broadband business, pushing revenue 13 per cent higher over the year. TPG Telecom has declared a fully franked final dividend of 2.25 cents. Shares in TPG Telecom have firmed 0.34 per cent and are trading at $1.48.
Best and worst performers
Most sectors are in the red: The best performing sector is Consumer Staples, rising 49 points to 7,382. Shares in Metcash have advanced 1.59 per cent and trading at $4.145. Shares in Coca-Cola Amatil and Woolworths are also higher.
The worst performing sector is Materials falling 141 points to 11,741. Shares in Sandfire Resources have dropped 3.77 per cent and trading at $6.90. Shares in PanAust and Sundance Resources are also lower.
New Zealand
The NZSX50 has added 0.65 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 0.39 per cent at $2.57 followed by Fletcher Building, Westpac and ANZ.
Gold and the dollar
Gold is trading at $US1,783 an ounce. The Australian dollar is buying $US1.0234 cents.
