The Australian share market opened moderately lower this morning and slipped 0.1 per cent at noon, after US and European markets put in a soft performance overnight, as concern for the European debt crisis continues to weigh on sentiment.
The S&P/ASX 200 index is 5 points down at 4,381. On the futures market the SPI is 8 points lower.
Company news
Tasmanian timber company Gunns Limited
(ASX:GNS) has appointed a voluntary administrator after it failed to secure funds to keep the company running. Lenders have rejected the woodchipper’s plans for a capital raising or restructure. Gunns issued a statement to the market that confirmed the company is unable to continue trading. The company extended its annual net loss earlier this month to $903 million, booking about $800 million of write downs.
Leighton Holdings Limited’s
(ASX:LEI) wholly owned subsidiary Leighton Contractors Pty Ltd, has been awarded a $US1.5 billion contract by Fortescue Metals Group Limited
(ASX:FMG). Under the terms of the agreement, Leighton will deliver whole-of-mine management over five years at the Firetail mine, that forms part of the Soloman Hub. Shares in Leighton are trading down 0.06 per cent at $16.47.
Best and worst performers The best performing sector is telco services gaining 7 points to 1,331 Shares in Telecom Corporation of New Zealand
(ASX:TEL) have risen 1.89 per cent and trading at $1.89. Shares in M2 Telecommunications Group and Telstra are also stronger.
The worst performing sector is materials, falling 94 points to 9,892. Shares in Arrium Limited
(ASX:ARI) have fallen 6.03 per cent, trading at $0.55. Shares in Lynas Corporation and Fortescue Metals are also lower.
Gold and the dollar Gold is trading at $US1,768 an ounce and the Australian dollar is buying $US1.042.
