Midday: Aus shares flat

Market Reports

Despite soft leads, the Australian share market opened slightly higher however dropped 30 points before noon, pulled down by Telco stocks.

The S&P/ASX 200 index is 10 points down at 4,156. On the futures market the SPI is flat at noon.  

Company news

Aurora Oil & Gas Limited (ASX:AUT) will raise $120 million via an equity raising and issue 33.8 million shares at $3.55. The share issue will move ahead under Aurora’s 15 per cent placement capacity and will not require shareholder approval. Aurora’s chief says the equity raised will ensure the company is adequately funded for the completion of the recently announced Sugarloaf acquisition as well as its planned takeover of Eureka Energy Limited (ASX:EKA).Shares in Aurora are trading down 10.57 per cent at $3.47.

Paladin Energy Limited (ASX:PDN) has updated the market on the strike action impacting the Kayelekera Mine in Malawi. Paladin remains confident of an early return to full production and says employees have a strong willingness to return to work. Shares in Paladin are trading up 3.43 per cent at $1.21.

Best and worst performers

The best performing sector is Materials gaining 56 points to 9,883. Shares in Beadell Resources Limited (ASX:BDR) have risen 6.6 per cent and trading at $0.57. Shares in OneSteel and Bluescope Steel are also stronger.

The worst performing sector is Telco Services, falling 12 points to 1,233. Shares in TPG Telecom Limited (ASX:TPM) have fallen 1.13 per cent, trading at $1.75. Shares in Telstra and Telecom Corporation of New Zealand are also lower.

Gold and the dollar

Gold is trading at $US1,548 an ounce.
The Australian dollar is buying 99.47 US cents.

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