Midday: Geopolitics push gold up & ASX down

Market Reports

The Australian share market is trading slightly down at noon after geopolitical tensions pushed global equity markets steeply lower overnight. European and US markets initially fell following news Israel has ramped up military action in the Gaza Strip and markets extended losses when a Malaysian Airlines jet was shot down in Ukraine. Safe haven precious metals rose in response with the price of gold gaining almost $US20 and gold miners lifting as a result on the local bourse this morning. Real estate, retailing and resources sectors are dragging with the Big Four Banks and major miners also trading in the red.  
 
Figures
 
The S&P/ASX 200 index has retreated 7.5 points to 5,515 at noon. On the futures market the SPI is 14 points down. 
 
Company news
 
Australia’s major listed airlines Qantas Airways Limited (ASX:QAN) and Virgin Australia Holdings Limited (ASX:VAH) have lifted despite news a Malaysia Airlines passenger flight was shot down over Ukraine overnight. All 298 passengers and crew on route to Kuala Lumpur from Amsterdam were killed when Flight MH17 came down following the attack which has been blamed on Russian-backed rebel groups. Global airline shares took a hit in the aftermath with Malaysian Airline's stock widening this years decline after its Flight MH370 disappeared in March. Closer to home shares in Virgin Australia are trading 1.23 per cent higher at $0.41 while shares in Qantas Airways have lifted 0.4 per cent to $1.25. 
 
Responding to media speculation Asciano Limited (ASX:AIO) has confirmed it is in talks to potentially sell part of its ports and logistics business. The transport group has advised these discussions are preliminary and incomplete and no deal has been done at this stage. While there is also no assurance a transaction will take place Asciano says it will continue to keep the market informed. Reports speculate the company has received interest from a state-owned Chinese corporation and a possible sale of a stake could fetch more than $1 billion. Shares in Asciano have risen 4.44 per cent to $6.00 at noon. 
  
Best and worst performers
 
Most sectors are trading lower: The best performing sector is industrials, gaining 0.3 per cent to 4,130. Shares in Asciano Limited (ASX:AIO) have risen 4.44 per cent and trading at $6.00. Shares in Mineral Resources Limited (ASX:MIN) and Bradken Limited (ASX:BKN) are also stronger. 
 
The worst performing sector is real estate investment trusts, falling 0.6 per cent to 1,099.5. Shares in Scentre Group Limited (ASX:SCG) have dropped 1.47 per cent, trading at $3.35. Shares in GPT Group (ASX:GPT) and Stockland Limited (ASX:SGP) are also lower. 
 
Gold and the dollar
 
Gold is trading at $US1,316 an ounce.
The Australian dollar is buying $US0.9351.

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