Aussie stocks have started the week on a positive note but have trimmed early gains and trading marginally higher at noon, with mining stocks weighing on the market.
The S&P/ASX 200 index is 7 points up at 4,717. On the futures market the SPI is 7 points higher.
Economic news
The TD Securities-Melbourne Institute inflation guage rose 0.4 per cent in December, after a fall in consumer prices November. In the year to December, the gauge rose 2.4 per cent, in line with the previous month’s reading and in line with the RBA’s target of between 2 and 3 per cent.
The number of home loans approved in November fell 0.5 per cent to 46,199, according to the Australian Bureau of Statistics. Economists had expected housing finance commitments to rise 0.5 per cent in November. The ABS said today that total housing finance by value fell 0.8 per cent for the month.
Company news
Shares in Altona Mining Limited
(ASX:AOH) have fallen after global copper producer Xstrata held off from exercising its 51 per cent interest in the company’s tenements located in the Mt Isa region of Queensland. Altona’s Managing Director says it will now progress options for the partnering, financing and development of the project. Shares in Altona are trading down 12.5 per cent at $0.24.
OZ Minerals Limited
(ASX:OZL) and Cochlear Limited
(ASX:COH) are reportedly being investigated by the federal police over alleged foreign bribes after a report issued by the Organisation for Economic Co-operation and Development described Australia as having lax laws in foreign bribery. The allegation against Oz Minerals relates to its buyout of Cambodian goldmining operations. Cochlear’s alleged bribes involve a public hospital’s medical supplies tender n 2004. Shares in Oz Minerals are trading down 2.21 per cent at $6.86.
Best and worst performers The best performing sector is utilities gaining 71 points to 5,325. Shares in Energy World Corporation Limited
(ASX:EWC) have risen 3.13 per cent and trading at $0.33. Shares in Spark Infrastructure Group and SP AusNet are also stronger.
The worst performing sector is materials, falling 16 points to 10,568. Shares in Lynas Corporation Limited
(ASX:LYC) have fallen 2.99 per cent, trading at $0.65 Shares in Oz Minerals and Gindalbie Metals are also lower.
Gold and the dollar
Gold is trading at $US1,661 an ounce and the Australian dollar is buying $US1.053.
