Midday: Aus shares recover early losses

Market Reports

Following weak leads, the Australian share market opened lower but by midday a rally had seen the local bourse pushing back towards positive territory. The early selloff came on the back of protests in Hong Kong and weak consumer confidence figures from the US.
 
The flurry of late morning activity was led by the industrial sector with Aurizon Holdings and Qantas Airways both making gains.
 
The S&P/ASX 200 index is 2.5 points down at 5,290. On the futures market the SPI is 6 points lower.
 
Economic news

Australian Industry Group has reported its performance of manufacturing index has dropped 0.8 per cent to 46.5 in September. A figure below 50 represents contraction in the industry and the report cited a high Australian dollar and the decline of car manufacturing as driving the drop. 

Also today the Australian Bureau of Statistics reported retail trade for August with the seasonally adjusted result up 0.1 per cent. 
 
Company news
 
UXC Limited (ASX:UXC) will acquire the cyber security company Saltbush Group. The IT and communications consulting company says the Saltbush Group has annual revenue of around $12 million and focuses on information and cyber security professional services. The company says the buy will offer strategic positioning in a growing sector with particular focus on the Federal Government market. Shares in UXC are trading down 0.55 per cent at $0.91
 
Axiom Mining Limited (ASX:AVQ) has hit a snag in its Solomon Islands court battle with Sumitomo serving an application for an interim injunction. Last week’s announcement of a win by Axiom in the Solomon Islands High Court saw a spike in the company’s share price, but today’s news has seen the company back in the red. CEO Ryan Mount says exploration will be temporarily halted on Isabel Island but is confident of resolving the matter. Mr Mount questions the timing of the application in light of the court having called the whole legal matter “an abuse of the court’s proceedings”. Shares in Axiom are trading down 25 per cent at $0.01 

Best and worst performers

The best performing sector is industrials, gaining 0.6 per cent to 4,035. Shares in Mermaid Marine Australia Limited (ASX:MRM) have risen 10.36 per cent and trading at $2.13. Shares in Aurizon Holdings Limited (ASX:AZJ) and Recall Holdings Limited (ASX:REC) are also stronger. 
 
The worst performing sector is health care, falling 0.8 per cent to 15,240. Shares in Mesoblast limited (ASX:MSB) have fallen 1.39 per cent, trading at $4.26. Shares in Sigma Pharmaceutical Limited (ASX:SIP) and CSL Limited (ASX:CSL) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,206 an ounce.
The Australian dollar is buying $US0.8686

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