Midday: Aus shares take a dive

Market Reports

With Wall Street ending its record run of gains on Friday the Australian share market has taken a hard dive to start the week and is 1.15 per cent down at noon, with telco services the only major sector trading out of the red. Local investors are also biting their nails over the situation in the Eurozone, with debate on the unprecedented tax on Cypriot savings threatening to cause indefinite closures of Cyprus banks. 
 
The S&P/ASX 200 index is 59 points down at 5,061. On the futures market the SPI is 62 points lower. 
 
Economic News

The Australian Bureau of Statistics says new motor vehicle sales were flat in February, however still firmly higher than the same period last year. 95,708 new vehicles were sold in February, up 9.4 per cent on February 2012. 
 
Company news
 
Aurizon Holdings Limited (ASX:AZJ) has signed a long term coal haulage contract with Queensland based Thermal coal producer Ensham, extending an existing relationship until 2024. The performance based agreement is for the carriage of 5.5 million tonnes annually between Ensham’s central Queensland mine and the Port of Gladstone. Executive Vice President Paul Scurrah says the new agreement will generate increased value for both parties. Shares in Aurizon are trading up 0.87 per cent at $4.08. 
 
Austal Limited (ASX:ASB) is the beneficiary of a $US20 million modification to a pre-existing contract with the United States Department of Defence. Austal USA will conduct special studies, analysis and reviews for its Littoral Combat Ship program over the next 12 months, work it says is aligned with its strategy of expanding the level of support services it provides. Shares in Austal are trading up 1.49 per cent at $0.68. 
  
Best and worst performers

The best performing sector is Telco services gaining 7 points to 1,552. Shares in M2 Telecommunications Group Limited (ASX:MTU) have risen 1.72 per cent and trading at $4.72. Shares in TPG Telecom Limited (ASX:TPM) and Telstra Corporation Limited (ASX:TLS) are also stronger. 
 
The worst performing sector is Health Care, falling 218 points to 12,680. Shares in Ansell Limited (ASX:ANN) have fallen 3.82 per cent, trading at $15.61. Shares in Primary Health Care Limited (ASX:PRY) and CSL Limited (ASX:CSL) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,601 an ounce and the Australian dollar is buying $US1.036.

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