The Australian share market is weaker at midday, as the Reserve Bank cuts its outlook for growth.
The S&P/ASX 200 index has lost 15 points and is 4,267. On the futures market the SPI is 23 points lower.
Economic news
The Reserve Bank has released its Statement on Monetary Policy for February, trimming its outlook for economic growth down from 4 per cent predicted in November to 3.5 per cent in the year to June. Core inflation is expected to be at 2.25 per cent for the year to the end of June compared with a prior forecast of 2.5 per cent.
Company news
Newcrest Mining Limited (ASX:NCM) has posted a record first half net profit of $659 million, a 50 per cent increase on the previous corresponding period. Analysts had expected a profit of around $550 million. Sales revenue for the six months to December 31 rose 19 per cent to $2.3 billion. Higher gold and copper prices contributed to the earnings increase, offsetting cost pressures. The miner has increased its interim dividend by 20 per cent to 12 cents. Newcrest Mining shares have gained 2.99 per cent and are trading at $34.44.
Australian based resource company Richmond Mining Limited (ASX:RHM) has been placed in a trading halt pending the release of an announcement regarding a capital raising and board restructuring. Trading is expected to resume on Tuesday morning or when the announcement is made. The company’s main project is a magnetite iron deposit in Nevada in the US. Richmond Mining shares last traded at $0.235.
Best and worst performers
The best performing sector is Telco Services gaining 16 points to 1,167. Shares in Telstra Corporation Limited (ASX:TLS) have advanced 1.34 per cent and trading at $3.415. Shares in Hutchison Telecommunications Limited (ASX:HTA) and My Net Fone Limited (ASX:MNF) are both flat.
The worst performing sector is Materials, falling 114 points to 11,557. Shares in Sandfire Resources (ASX:SFR) are 3.1 per cent lower, trading at $8.12. Shares in Murchison Metals Limited (ASX:MMX) and Regis Resources Limited (ASX:RRL) have also lost value.
New Zealand
The NZSX50 is 20 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 up 1.67 per cent to $6.69, followed by Telecom Corporation of New Zealand, ANZ and Westpac.
Gold and the dollar
Gold is trading at $US1,731 an ounce and the Australian dollar is buying $US1.0761.
