Following negative offshore leads the Australian share market fell more than 1 per cent at open and is 0.7 per cent down at noon. Local investors have overlooked news the European Central Bank has handed out loans to banks to support the region. Instead sentiment has been weighed down by comments from the Federal Reserve’s Chairman Ben Bernanke, omitting any suggestion that the US economy is set for more economic stimulus.
The S&P/ASX 200 index has dropped 31 points and is 4,267. On the futures market the SPI is 23 points lower.
Economic news
Manufacturing activity expanded for the third straight month but at a slower pace than the month before. The Australian Industry Group and PriceWaterhouseCoopers Performance of Manufacturing Index eased 0.3 index points to 51.3 in February, still sitting above 50, the level that indicates expansion.
Company news
Shares in Rupert Murdoch’s News Corporation (ASX:NWS) have lifted on news his son James Murdoch has stepped down as executive chairman of News International across Europe and Asia. James Murdoch is now expected to focus on expanding the media company’s pay-TV businesses and broader international operations while based in New York. Shares in News Corporation have lifted 0.42 per cent, trading at $18.94.
Shares in Western Areas NL (ASX:WSA) have entered into a trading halt, the nickel miner says pending an announcement regarding a corporate transaction. Trading is expected to resume when an announcement is made or at the start of next week’s trading week. Shares in Western Areas last traded at $5.68 before entering into a trading halt this morning.
Best and worst performers
Most sectors are trading lower: The best performing sector is Telco Services adding 3 points to 1,132. Shares in EFTel Limited (ASX:EFT) have risen 2.08 per cent and trading at $0.245. Shares in Amcom Telecommunications Limited (ASX:AMM) and Singapore Telecommunications Limited (ASX:SGT) are also stronger.
The worst performing sector is Utilities, retreating 111 points to 4,513. Shares in Energy World Corporation Limited (ASX:EWC) have fallen 2.9 per cent, trading at $0.67. Shares in AGL Energy Limited (ASX:AGK) and DUET Group (ASX:DUE) are also down at noon.
New Zealand
The NZSX50 is 2 points lower at noon: Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock 0.47 per cent higher at $2.15, followed by Fletcher Building, ANZ and Westpac.
Gold and the dollar
Gold is trading at $US1,706 an ounce.
The Australian dollar is buying $US1.0749.
