Midday: ASX reverses early gain

Market Reports

Despite a bright start, the Australian share market has slumped to be 0.7 per cent lower at noon. The Materials sector is leading the way down with BHP, Rio and Fortescue all accelerating losses in early trade. 
 
The S&P/ASX 200 index is 35 points down at 5,186. On the futures market the SPI is 36 points lower. 
 
As reaction from Wayne Swan’s Federal Budget continues, FNN had a brief chat with Ian Finch, Executive Chairman of IronClad mining, who cast some doubt on Mr Swans forecast of a shift from the resource investment boom.

It's day two of the RIU Resources Round Up conference in Sydney and Vertical Events Business Development Manager Jaxon Crabb says the next big mining success story might just be in the room. 
 
Economic news

The Australian Bureau of Statistics says wage prices grew in Australia in the first quarter but fell short of expectations. In the three months to March, the Australian wage price index grew 0.7 per cent, shy of analyst expectations of a 0.9 per cent increase.
 
Company news
 
Qantas Airways Limited (ASX:QAN) and Emirates have received New Zealand government approval to extend their alliance to trans-Tasman routes. New Zealand’s transport minister Gerry Brownlee gave a five year approval to the tie up, the last big hurdle to the major alliance. Shares in Qantas are trading down 0.44 per cent at $1.71.  
 
CSR Limited (ASX:CSR) has reported a full year loss of $146.9 million, which includes the write down of its Viridian glass business. The building products supplier’s trading revenue for the year to March fell 7 per cent to $1.68 billion, falling prey to a tough construction sector. 
Despite the result, CSR will pay an unfranked dividend of 2.1 cents per share. Shares in CSR are trading down 1.27 per cent at $1.94. 
  
Best and worst performers

The best performing sector is Utilities gaining 66 points to 5,772. Shares in Energy World Corporation Limited (ASX:EWC) have risen 33.33 per cent and trading at $0.40. Shares in APA Group (ASX:APA) and SP AusNet (ASX:SPN) are also stronger. 
 
The worst performing sector is Materials, falling 226 points to 9,437. Shares in Atlas Iron Limited (ASX:AGO) have fallen 4.89 per cent, trading at $0.88. Shares in Silver Lake Resources Limited (ASX:SLR) and Mount Gibson Iron Limited (ASX:MGX) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,426 an ounce and the Australian dollar is buying $US0.9889.

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