Midday: Aus shares snap winning streak

Market Reports

The Australian share market has snapped a five day winning streak and slipped into the red. Weighed down by weak leads amid caution over Europe’s sovereign debt crisis, local equities have shed more 1 per cent. Energy and resource stocks are leading the falls.

The S&P/ASX200 index has dropped 43 points to 4,185. On the futures market the SPI is 49 points lower.

Economic news

Confidence edged up unexpectedly in October, that is according to a survey of 1,200 people from Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute. The index of consumer sentiment increased 0.4 per cent to 97.2 in October, following a rise of 8.1 per cent the month before. Year on year, the index is 16.9 per cent lower than the same time in 2010.

The Australian Bureau of Statistics has reported that home loans approved in August increased 1.2 per cent to 50,965. In the same month total housing finance by value added 1 per cent to $20.848 billion.

Company news

Energy Resources of Australia Limited (ASX:ERA) is seeking to raise $500 million from shareholders to fund the expansion of its flagship Ranger mine in the Northern Territory. The Rio Tinto Limited (ASX:RIO)-controlled uranium miner says the deal will be executed through a 12-for-7 pro rata accelerated renounceable entitlement issue at the discounted price of $1.53 per share. Rio says it will support the raising through subscribing to its full entitlement and underwriting any shortfall. Shares in Energy Resources of Australia entered into a trading halt today, having last traded at $3.29.

Fortescue Metals Group Limited (ASX:FMG) has announced that its total resource inventory has increased to 11.42 billion tons of iron ore. The Pilbara-focused iron ore miner says recent drilling at its Nyidinghu ore body has boosted total reserves by 908 million tonnes. The Nyidinghu projects is located 35 kilometres south of Fortescue's Cloudbreak operations in Western Australia. Shares in Fortescue Metals Group have fallen 3.53 per cent and are trading at $4.64.
 
Best and worst performers

Most sectors are lower: The best performing sector is Consumer Staples, adding 27 points to 7,599. Shares in Woolworths have risen 1.38 per cent and trading at $24.96. Shares in Foster’s Group are higher while shares in and Coca-Cola Amatil are weaker.

The worst performing sector is Materials dropping 265 points to 11,423. Shares in Gunns have lost 8.33 per cent and trading at $0.165. Shares in Intrepid Mines and OneSteel have also fallen. 

New Zealand

The NZSX50 has fallen 62 points. Taking a look at the top four stocks by turnover: After issuing a profit warning shares in Fletcher Building are at the top of the list, with the stock shedding 10.89 per cent to $7.04, followed by Telecom Corporation of New Zealand, ANZ and AMP New Zealand Office.

Gold and the dollar

Gold is trading at $US1,665 an ounce. The Australian dollar is buying 99.3 US cents.  


Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?