Midday: ASX seesaws in morning trade

Market Reports


Following negative leads from overseas markets worried about international tensions, the Australian share market has see-sawed through most of the morning and is 0.05 per cent higher at noon. Investors are also awaiting a speech from RBA Governor Glenn Stevens at 1pm. 
 
The S&P/ASX 200 index is 3 points up at 5,543. On the futures market the SPI is 2 points lower. 
 
Company news
 
Mining explorer Western Areas Limited (ASX:WSA) says it has just posted its strongest cash flow quarter in over two years and has now achieved a net cash position. The company has reaped the benefits of a stronger nickel price for the June quarter with unit cash cost of $2.50 per pound, 7.4 per cent lower than guidance of $2.70/lb. Western Areas says the Indonesian government’s ban of the export of unprocessed laterite ore has helped see the nickel price increase over 30 per cent since January. The ban is expected to continue after current presidential elections have been decided. The higher prices have seen consolidated cash for the quarter lifted by $55 million to $231 million moving the company into a net cash position of $10.3 million. Shares in Western Areas are trading 4.44 per cent stronger at $5.18. 
 
Australia’s largest window coverings manufacturer Kresta Holdings Limited (ASX:KRS) is urging shareholders to accept an independently-verified takeover offer of 23 cents per share. The offer, which values the company at $34.5 million, has been made by Chinese company Suntarget Trading. Suntarget already holds nearly 20 per cent of Kresta’s stock and says it wants to acquire the company so it has a greater influence over business opportunities and a required restructure. Suntarget has indicated it intends to keep Kresta’s 700 employees. Kresta Managing Director Lu Xianfeng is a major shareholder in Suntarget, a wholly-owned subsidiary of Ningbo Xianfeng New Material company. An independent expert report prepared by KPMG has found the 23 cent per share offer fair and reasonable. The offer is scheduled to close on Friday 29th August. Shares in Kresta have lifted from 16 cents just prior the offer and are currently trading flat at 23 cents. 
 
Best and worst performers

The best performing sector is materials, gaining 0.5 per cent to 10,327 Shares in Lynas Corporation have risen 6.25 per cent and are trading at $0.17. Shares Western Areas and Bluescope Steel are also stronger. 
 
The worst performing sector is staples, falling 0.2 per cent to 10,026. Shares in Goodman Fielder have fallen 1.53 per cent, trading at $0.65. Shares in Bega Cheese and Treasury Wine Estates are also lower. 
 
Gold and the dollar

Gold is trading at $US1,313 an ounce.
The Australian dollar is buying 93.73 US cents. 

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