Midday: Aus shares follow US lower

Market Reports

A reversal of fortunes in the US overnight saw Wall St close lower and the Australian share market followed, the ASX slipped on open and is 0.18 per cent down at noon.
 
The miner’s saw major losses with the iron ore price dropping even further. 
 
The S&P/ASX 200 index is 7 points down at 5,520. On the futures market the SPI is 8 points lower.
 
Economic news

The Housing Industry Association has shown a continued rise in home sales figures with a 2.9 per cent lift in April. 
 
The ABS New private capital expenditure figures for the March quarter have shown a drop of 4.2 per cent. The drop was a bigger than analysts had expected and represents a contraction in spending on big ticket items such as large equipment and buildings. 
 
Company news
 
Transurban Group (ASX:TCL) has raised $557 million in a retail offering of 82.6 million new shares. The toll road operator issued the stock at $6.75 and it represents the final stage of its $2.34 billion equity raising announced on 24 April. The bookbuild comes in the wake of a number of planned investments including the company’s $7 billion purchase of Queensland Motorways last month. The company says they are now focussed on integrating the tollroads business into its broader portfolio, to ensure the value is delivered for the benefit of all security holders. Shares in Transurban are trading up 1.57 per cent at $7.42 on the news. 
 
Alliance Aviation Services Limited (ASX:AQZ) has inked a three year initial contract for charter services with BHP Billiton Nickel West. The aircraft charter services company specialises in fly-in-fly-out operations and will operate 17 return services per week from Perth. The company says the contract reflects the flexibility of its product offering and fleet capability. Shares in Alliance Aviation are trading up 0.88 per cent at $1.15 on the news. 
 
Best and worst performers

The best performing sector is telco services gaining 11 points to 1,872. Shares in Singapore Telecommunications Limited (ASX:SGT) have risen 1.22 per cent and trading at $3.33. Shares in Telstra Corporation Limited (ASX:TLS) and iiNet Limited (ASX:IIN) are also stronger.
 
The worst performing sector is materials, falling 105 points to 10,016. Shares in Mount Gibson Iron Limited (ASX:MGX) have fallen 3.13 per cent, trading at $0.78. Shares in Orica Limited (ASX:ORI) and Atlas Iron Limited (ASX:AGO) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,258 an ounce.
The Australian dollar is buying $US0.9255.

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