Despite nudging higher at open the Australian share market quickly retreated into negative territory and is trading 0.6 per cent down at noon. Local stocks have defied strong offshore leads and ignored fresh highs on US markets on the back of improving economic indicators.
Mining and energy stocks are now dragging the broader bourse down following a week of production reports while the telco sector is maintaining yesterday’s upward momentum.
Figures
The S&P/ASX 200 index has fallen 31 points and is trading at 4,963. On the futures market the SPI is 28 points lower.
Company news Explosives maker Orica Limited
(ASX:ORI) has cut its annual net profit guidance by 10 per cent, blaming weaker than expected economic conditions and higher than expected costs of integrating its ground support business.
Property investor CFS Retail Property Trust
(ASX:CFX) has inked a deal to sell four shopping centres in Victoria, valued at $446.5 million, to a new fund planning to list on the Australian Securities Exchange (ASX) called Pacific Retail REIT.
Oil and gas explorer Beach Energy Limited
(ASX:BPT) has advised hydrocarbon shows have been identified in a well located in its Abu Sennan concession in Egypt.
Integrated engineering company RCR Tomlinson Limited
(ASX:RCR) says it has achieved the $140 million takeover of infrastructure engineering company Norfolk Group Limited
(ASX:NFK) after obtaining court approval today.
Best and worst performers The best performing sector is telco services, gaining 15 points to 1,694. Shares in Telstra Corporation Limited
(ASX:TLS) have risen 1.03 per cent and trading at $4.92. Shares in M2 Telecommunications Group Limited
(ASX:MTU) and iiNet Limited
(ASX:IIN) are also stronger.
The worst performing sector is materials, falling 160 points to 9,037. Shares in Amcor Limited
(ASX:AMC) have fallen 2.6 per cent, trading at $10.30. Shares in Rio Tinto Limited
(ASX:RIO) and BHP Billiton Limited
(ASX:BHP) are also lower.
Gold and the dollar
Gold is trading at $US1,286 an ounce.
The Australian dollar is buying 91.75 US cents.
