The Australian share market saw a flat open on the back of absent Wall Street leads, however local stocks have edged 0.3 per cent lower at noon, with news of Joe Hockey’s Graincorp takeover rejection dominating interest. The grain handler has crashed on the news after emerging from a trading halt, while the Aussie dollar also dipped. Materials are leading the way for the major sectors at the moment.
The S&P/ASX 200 index is 20 points down at 5,314. On the futures market the SPI is 32 points lower.
Economic news
The Reserve Bank of Australia says credit growth in the private sector rose 0.3 per cent in October, following an identical 0.3 per cent lift in both September and August. Annual growth came in at 3.5 per cent, slightly higher than the 3.3 per cent rise over the year to August. Housing credit increased by 0.5 per cent in October, and 5 per cent over the year to September. Business credit edged up 0.1 per cent for the month, and 1.4 per cent over the year.
Company news
Graincorp Limited
(ASX:GNC) shares have emerged from a trading halt and tumbled on the back of treasurer Joe Hockey’s rejection of US giant Archer Daniels Midland’s takeover bid. Political opinion on the decision has been mixed, coalition colleagues trumping the call as being in Australia’s national interest, while shadow treasurer Chris Bowen has lamented that the greatest obstacle to foreign investment in Australia is in the cabinet. Shares in Graincorp are trading down 24.64 per cent at $8.44.
Rio Tinto Limited
(ASX:RIO) shares are stronger in early trade after the mining giant announced its intention to suspend alumina production at its Gove refinery in the Northern Territory. Rio will focus on its bauxite operations after determining that the refinery was no longer viable in current market conditions. Shares in Rio Tinto are trading up 2.65 per cent at $66.13.
Best and worst performers The best performing sector is Materials gaining 53 points to 9,978. Shares in Resolute Mining Limited
(ASX:RSG) have risen 4.44 per cent and trading at $0.47. Shares in Atlas Iron Limited
(ASX:AGO) and Rio Tinto Limited
(ASX:RIO) are also stronger.
The worst performing sector is Energy, falling 182 points to 13,180. Shares in Paladin Energy Limited
(ASX:PDN) have fallen 2.41 per cent, trading at $0.41. Shares in Whitehaven Coal Limited
(ASX:WHC) and Oil Search Limited
(ASX:OSH) are also lower.
Gold and the dollar
Gold is trading at $US1,243 an ounce and the Australian dollar is buying $US0.9089.
