Following a lacklustre finish for US and European markets, the Australian share market opened in the red and is 0.4 per cent lower at noon. As investors keep an eye on debt talk developments in Greece the local sectors are trading mixed, weighed down by the telco’s after Telstra Corporation Limited’s (ASX:TLS) 23 per cent first half profit growth missed expectations.
The S&P/ASX 200 index has lost 19 points and is 4,272. On the futures market the SPI is 21 points lower.
Company news
Shares in Sims Metal Management Limited (ASX:SGM) have sunk to the top 200's worst performer after releasing an earnings update and advising it will write down the value of its North American division by $614 million. The scrap metal recycler says the goodwill write-down will not impact its dividend policy or growth strategy, share buy-back plan or compliance with credit agreements. Sims is due to release its first half results on February 17, 2012 and is expecting to deliver improved underlying EBITDA of about $141 million. Shares in Sims Metal Management have sunk 6.75 per cent and are trading at $14.23.
Leighton Holdings Limited’s (ASX:LEI) wholly owned subsidiary Thiess has scored its third major contract this week, a $180 million contract from BHP Billiton Limited (ASX:BHP). Thiess will undertake civil earthworks for the development of BHP Billiton Mitsubishi Alliance’s Caval Ridge mine project in central Queensland. It’s been a big week for Thiess who yesterday won a $325 million contract to construct gas processing facilities in Queensland and on Tuesday won a $1 billion contract from OZ Minerals Limited (ASX:OZL). Shares in Leighton Holdings are trading 1.09 per cent lower at $24.44.
Best and worst performers
The sectors are trading mixed: The best performing sector is Energy gaining 113 points to 14,151. Shares in Linc Energy Limited (ASX:LNC) have advanced 5.19 per cent and trading at $1.42. Shares in Aurora Oil & Gas Limited (ASX:AUT) and Beach Energy Limited (ASX:BPT) are also stronger.
The worst performing sectors is Telco Services, falling 23 points to 1,151. Shares in EFTel Limited (ASX:EFT) are 3.85 per cent lower, trading at $0.25. Shares in Telstra Corporation Limited (ASX:TLS) and Singapore Telecommunication Limited (ASX:SGT) have also lost value.
New Zealand
The NZSX50 is 3 points higher at noon: Taking a look at the top four stocks by turnover, Fletcher Building is at the top of the list with stock down 0.15 per cent to $6.60, followed by Telecom Corporation of New Zealand, Turners & Growers and Westpac.
Gold and the dollar
Gold is trading at $US1,731 an ounce.
The Australian dollar is buying $US1.0779.
