The Australian share market has dropped 1.5 per cent at noon extending losses as concerns escalate over the status of Greek debt negotiations and local earnings reports. All sectors are trading in negative territory, weighed down by the miners and financials. All the top 20 stocks in the red, Westpac Banking Corporation (ASX:WBC) down 3 per cent after delivering a lower than expected quarterly result and warning Australia faces a prolonged slowdown.
The S&P/ASX 200 index has dropped 60 points and is 4,193. On the futures market the SPI is 65 points down.
Economic news
Australia's jobless rate unexpectedly dropped at the beginning of this year. According to the Australian Bureau of Statistics the nation’s jobless rate eased to 5.1 per cent in January, from 5.2 per cent the month before. In January Australian employers added a net 46,300 jobs, 10,000 more jobs than had been expected and the largest monthly increase since end of 2010.
Company news
GrainCorp Limited (ASX:GNC) has lifted to one of today’s best performers after releasing its 2012 financial year guidance. The grain handler expects another year of high volumes and earnings as it benefits from improved weather conditions during harvest. Graincorp has forecast a net profit of up to $185 million and EBITDA of up to $180 million in the 12 months to the end of this September 2012. Shares in GrainCorp have lifted 2.16 per cent and are trading at $8.04.
Goodman Fielder Limited (ASX:GFF) has slumped to today’s worst performer after posting a 77 per cent drop in its first half net profit. The breads and spreads maker’s net profit fell from $93 million to $21 million in the last six months of 2011. The fall was attributed to tough trading conditions, restructuring and redundancy charges, and foreign exchange losses. No interim dividend has been declared. Shares in Goodman Fielder have dropped 5.88 per cent and are trading at $0.48.
Best and worst performers
All sectors are in the red. The sector with the smallest losses is Telco Services, easing 2 points to 1,165. Shares in My Net Fone Limited (ASX:MNF) have gained 7.14 per cent and trading at $0.225. Shares in iiNet Limited (ASX:IIN) and Amcom Telecommunications Limited (ASX:AMM) are also stronger.
The worst performing sector is Materials, falling 222 to11,204. Shares in Lynas Corporation Limited (ASX:LYC) are 4.37 per cent lower, trading at $1.205. Shares in Atlas Iron Limited (ASX:AGO) and Fortescue Metals Group Limited (ASX:FMG) have also lost value.
New Zealand
The NZSX50 is 4 points lower at noon: Taking a look at the top four stocks by turnover, Sky City Entertainment Group is at the top of the list with stock adding 0.56 per cent to $3.61, followed by Fletcher Building, Telecom Corporation of New Zealand and Westpac.
Gold and the dollar
Gold is buying $US1,729 an ounce.
The Australian dollar is buying $US1.0725.
