The Australian sharemarket has slipped 0.17 per cent at midday, with the health of the global economy and a range of economic news weighing down stocks.
The S&P/ASX 200 index has dropped 8 points and is 4,101. On the futures market the SPI is four points lower.
Economic news
Sales of new homes in Australia rose 6.8 per cent in November to the highest in five months, the Housing Industry Association (HIA) says. Its survey of major builders shows sales of new detached houses rose 9.8 per cent in November, while the multi-unit sector dropped by 17 per cent.
The Australian Industry Group/Housing Industry Association Performance of Construction Index (PCI) rose 1.4 points to 41 in December, showing that activity in the construction sector has been in contraction since June 2010.
And the much anticipated retail sales figures from the Bureau of Statistics were unchanged for November after four consecutive rises, falling short of analyst expectations of a 0.3 per cent increase.
Company news
Rio Tinto Limited (ASX:RIO) is set to compulsorily acquire the remaining shares in Canadian uranium miner Hathor, after extending its stake to almost 94 per cent. Rio’s offering $4.48 a share for the takeover. Rio shares are trading 0.62 per cent lower at midday at $62.13.
And News Ltd reports politicians have slammed the Australian Competition and Consumer Commission (ACCC) on its handling of the Metcash Limited (ASX:MTS) takeover of Franklins supermarkets. They’re arguing that more than $16 million has been wasted on legal fees and that court actions taken by the watchdog delayed a deal that will increase competition. Metcash shares are trading 0.85 per cent weaker at $4.085.
Performers
The best performing sector is telcos, gaining 13 points to 1,148. Shares in Reverse Corp have risen 2.63 per cent and are trading at just under four cents. Shares in Telstra and iiNet are also lower.
The worst performing sector is industrials, dropping 24 points to 3,365. Shares in Transfield have dropped 0.93 per cent and trading at $2.13. Shares in Macquarie Atlas and Brambles are also higher.
IPOs
Cassini Resources listed today at 20 cents. It opened at 21 cents. It was 20 cents at midday.
New Zealand
The NZSX50 is flat. The top four stocks by turnover, Westpac is at the top of the list with stock down 0.76 per cent to $26.20, followed by Fletcher Building, Telecom Corporation of New Zealand and Chorus.
Gold and the dollar
Gold is trading at $US1,612 an ounce and the Australian dollar is buying $US1.0173.
