Midday: Banks lead Aus shares lower

Market Reports

A late rally on US markets failed to outweigh losses in Europe and China this morning and while the Australian share market opened a touch higher, by noon it had slipped 0.8 per cent.
 
The banks led the market lower today with pessimism spurred by another weak read on consumer sentiment from the Westpac-Melbourne Institute adding to unease at the state of the global economy. 
 
Health stocks also took a hit in light of the Prime Ministers policy announcement ditching the $7 GP co-payment in favour of a fee to be levied by the doctors themselves. 
 
The S&P/ASX 200 index is 41 points down at 5,242. On the futures market the SPI is 43 points lower. 
 
Economic news

The Westpac-Melbourne Institute has released its survey of Consumer Sentiment for December showing pessimism continues to grow with the index falling 5.7 per cent to 91.1 points this month.
 
While the Australian Bureau of Statistics has shown demand for home loans has increased more than expected in October with Housing finance data showing a rise of 1 per cent in total housing finance seasonally adjusted.
 
Company news
 
Capitol Health Limited (ASX:CAJ) is set to acquire Southern Radiology Group and is launching a $37.5 million capital raising to fund the purchase. The health care provider says Southern Radiology booked revenue of $37 million through its 14 clinics and that 8 radiologists in the partnership will join Capitol as part of the deal. Completion of the purchase is expected by the end of April next year. Shares in Capitol Health last traded at $0.64.
 
Alexium International Group Limited (ASX:AJX) has seen its share dip after it came out of a trading halt and announced a deal with the US army to develop flame retardant uniforms. The specialty chemical treatment company has been granted an initial $50,000 to provide fabrics for the venture. The company says it is the only provider of the particular flame retardant technology and that it has patent protection in the US. The company estimates the deal could be worth between $US10 -$US16 million per year. Shares in Alexium are trading down 2.15 per cent at $0.46. 
  
Best and worst performers

The best performing sector is materials, gaining 0.46 per cent to 8,451. Shares in Northern Star Resources Limited (ASX:NST) have risen 8.55 per cent and trading at $1.27. Shares in Resolute Mining Limited (ASX:RSG) and Beadell Resources Limited (ASX:BDR) are also stronger.
 
The worst performing sector is health care, falling 1.6 per cent to 16,950. Shares in Primary Health Care Limited (ASX:PRY) have fallen 6.65 per cent, trading at $4.49. Shares in Greencross Limited (ASX:GXL) and CSL Limited (ASX:CSL) are also lower. 
 
Gold and the dollar

Gold is trading at $US1,228 an ounce.
The Australian dollar is buying $US0.8298

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