The Australian share market is trading flat at noon with investors remaining cautious after negative leads out of the US and Europe, which has slipped into its second recession in four years.
The S&P/ASX 200 index is 11 points down at 4,338. On the futures market the SPI is 2 points lower.
Company news
Fortescue Metals Group Limited
(ASX:FMG) chairman Andrew Forrest says conquering evil is the goal of his high court challenge against the federal government’s mining tax. Fortescue is challenging the legality of the mineral resource rent tax, which he believes is fundamentally unconstitutional and interferes with the rights of state governments. Mr Forrest says Fortescue’s push to defer paying royalties is aimed at ensuring expansion plans for its Kings iron ore project in Western Australia remain on track. Shares in Fortescue Metals are trading down 1.26 per cent at $3.91.
Whitehaven Coal Limited
(ASX:WHC) will scale back its operations in Brisbane by cutting ten jobs in its business development unit and relocating into a smaller office. The cuts are a response to the global decline in coal prices, and fit within Whitehaven’s ongoing cost reduction initiatives and adjustments across its business. CEO Tony Haggarty says Whitehaven is not immune to the continued decline in global coal prices and is faced with difficult decisions in maintaining an appropriate cost-base. Shares in Whitehaven Coal are trading down 1.79 per cent at $2.74.
Best and worst performers The best performing sector is Industrials gaining 16 points to 3,250. Shares in NRW Holdings Limited
(ASX:NWH) have risen 4.74 per cent and trading at $1.88. Shares in Emeco Holdings Limited
(ASX:EHL) and Transpacific Industries Group Limited
(ASX:TPI) are also stronger at midday.
The worst performing sector is Financials excluding Real Estate Investment Trusts, falling 42 points to 5,093. Shares in FKP Property Group
(ASX:FKP) have fallen 2.63 per cent, trading at $0.18. Shares in QBE Insurance Group Limited
(ASX:QBE) and Westpac Banking Corporation
(ASX:WBC) are also trading lower so far today.
Gold and the dollar
Gold is trading at $US1,715 an ounce.
The Australian dollar is buying $US1.033.
