Despite positive leads the Australian share market dipped into the red at open and is 0.5 per cent down at noon, ahead of the RBA’s verdict on interest rates this afternoon. The threat of ratings downgrades in 15 European countries has offset optimism over a German and French debt deal. The sectors are mainly lower, with strength in the telcos and weakness among the industrials.
The S&P/ASX 200 index has lost 14 points and is 4,307. On the futures market the SPI is now 3 point weaker.
Economic news
Australia’s account deficit narrowed in the three months to the end of September, in line with expectations. The Bureau of Statistics has reported Australia booked an account deficit of $5.637 billion in the September quarter, seasonally adjusted. The figure compares with a deficit of $6.66 billion in the June quarter, downwardly revised.
Company news
BHP Billiton Limited (ASX:BHP) says average oil and natural gas production at its recently acquired Petrohawk Energy increased 46 per cent in the first nine months of 2011. BHP Billiton finalised its $US15.1 billion takeover of the shale gas company in August after buying shale assets from Chesapeake Energy in January. BHP plans to quadruple its onshore US shale production from about 250,000 to 1 million barrels of oil equivalent per day by fiscal 2020. Shares in BHP Billiton have dipped 0.38 per cent and are trading at $37.12.
The City of Sydney has selected Origin Energy Limited’s (ASX:ORG) wholly owned subsidiary Cogent Energy to begin the delivery of miniature low-emissions power stations. The Sydney council backed Cogent’s bid yesterday which will see Cogent construct low emissions zones through small gas driven plants around the inner city. Lord mayor Clover Moore says the council aims to take city buildings off the coal-fired grid as part of its 2030 goal to cut carbon emissions by 70 per cent. Shares in Origin Energy have slipped 1.41 per cent and are trading at $14.68.
Best and worst performers
Most sectors are lower: The best performing sector is: Telco Services firming 8 points to 1,108. Shares in Reverse Corp have risen 5.56 per cent and trading at $0.038. Shares in Telstra Corporation are higher while shares in Hutchison Telecommunications are steady.
The worst performing sector is Industrials, falling 69 points to 3,473. Shares in GWA International have pulled back 3.6 per cent and trading at $2.41. Shares in Hills Holdings and Monadelphous Group are both lower.
IPOs
Precious Metal Resources Limited (ASX:PMR) opened today at 22 cents, a 2 cent premium to its listing price of 20 cents per share. The metals explorer is currently trading at 22.5 cents.
New Zealand
The NZSX50 is 15 points lower: Taking a look at the top four stocks by turnover, Chorus is at the top of the list with stock easing 1.67 per cent to $2.94 followed by Telecom Corporation of New Zealand, Fletcher Building and Westpac.
Gold and the dollar
Gold is trading at $US1,723 an ounce.
The Australian dollar is buying $US1.0252.
