The Australian share market dropped at the open and is 1.5 per cent down at noon, weighed down by negative leads and scepticism over Europe’s latest plan to tackle debt.
The S&P/ASX 200 index has retreated 59 points and is 4,194. On the futures market the SPI is now 65 point weaker.
Economic news
The Australian Bureau of Statistics has shown business finance rose in October but housing starts dropped sharply in the three months to the end of September.
According to the ABS total personal finance commitments rose 5.2 per cent in October, total commercial finance was up 16.5 per cent, lease finance was down 2.4 per cent and housing finance for owner occupation was down 1.2 per cent.
The ABS has also shown housing starts defied expectations for a rise and dropped 6.8 per cent in the third quarter. In the year to September total dwelling commencements were down 11.5 per cent.
National Australia Bank has shown business conditions improved last month while business confidence remained unchanged. The NAB’s business conditions index increased to one point during in November from a read of zero the month before. Business confidence came in at two points, below its long-term average.
The Australian Bureau of Agricultural and Resource Economics and Sciences' has forecast earnings from Australian farms will increase about 6 per cent to $34.5 billion in fiscal 2012. The organisation’s December quarter Agricultural Commodities report says the forecast reflects “expected higher export shipments and relatively favorable agricultural prices”.
Company news
Fairfax Media Limited’s (ASX:FXJ) spin off New Zealand online auction business, Trade Me Group Limited (NZE:TME, ASX:TME), has today started trading on the New Zealand Stock Exchange. The new entity has risen to one of the best performers in morning trade with a market value of about $827 million. Fairfax will retain a 66 per cent interest in the company which will debut on the Australian Securities Exchange from noon today. Shares in Fairfax Media have fallen 2.25 per cent and are trading at $0.782.
Shares in Watpac Limited (ASX:WTP) gained in early trade after the construction contracting company tipped a higher annual net profit and unveiled a share buy-back. Watpac expects its full-year net profit to grow 20 per cent in the 2012 financial year, underpinned by record work in hand. Pre-tax earnings from underlying operations are expected to increase by at least 35 per cent. Shares in Watpac have gained 4.76 per cent and are trading at $1.21.
Best and worst performers
All sectors have retreated: The sector with the smallest losses is: Consumer Staples losing 12 points to 7,598. Shares in Woolwoths are steady at $25.95. Shares in Coca-Cola Amatil and Metcash are both lower.
The worst performing sector is Materials, dropping 229 points to 11,040. Shares in St. Barbara have pulled back 5.78 per cent and trading at $2.12. Shares in Intrepid Mines and CGA Mining have also lost ground.
New Zealand
The NZSX50 is 9 points lower. Taking a look at the top four stocks by turnover, Trade Me Group is at the top of the list with stock advancing 5.45 per cent to $2.90 on its first day of trade, followed by Telstra, Telecom Corporation of New Zealand and its spin-off, Chorus.
Gold and the dollar
Gold is trading at $US1,665 an ounce and the Australian dollar is buying $US1.006.
