Midday: ASX see-saws on open

Market Reports

 
Despite a strong rebound in overseas markets, particularly Wall Street which was responding to strong GDP data, the Australian share market has instead reacted to soft industrial data from China plunging one percent on open but clawing back to be 0.42 per cent down at noon. 
 
The S&P/ASX 200 index is 17 points down at 5,297. On the futures market the SPI is 13 points lower. 
 
Company news
 
Horizon Oil Limited (ASX:HZN) says it has made a new oil discovery at its 55 per cent owned Beibu Gulf development in China. The joint exploration venture is 40 per cent held by Roc Oil with the remaining 5 per cent owned by Oil Australia. Two wells were drilled with oil found at the Jiao-wei location however no oil was detected at the deeper Wei-zhou formation. The well is located around 5 km from an existing platform that has already produced over 6 million barrels. The new discovery adds volume to a planned future development and the joint venture will now look at development scenarios. Shares in Horizon Oil are trading 3.33 per cent stronger at $0.31. 
 
MOKO Social Media Limited (ASX:MKB, NASDAQ:MOKO) says it will acquire 80 per cent of Tagroom.com with a combination of cash and shares in MOKO. Tagroom is a news and entertainment service that publishes leisure content with the average user spending 11 minutes each day on the site. MOKO provides mobile apps and customised mobile advertising on their community platforms. The Tagroom.com deal will include an option based incentive package over the next 2 years with key Tagroom personnel also offered a 2 year employment and management contract with MOKO. Shares in MOKO Social Media are trading flat at $0.17. 
 
Best and worst performers

The best performing sector is telco services, gaining 0.5 per cent to 1,882. Shares in Telstra have risen 0.56 per cent and trading at $5.34. Shares in iiNet and Singapore Telecom are also stronger. 
 
The worst performing sector is consumer staples, falling 1.2 per cent to 9,625. Shares in Treasury Wine Estates have plunged 15.45 per cent, trading at $4.16 after the company scrapped takeover talks, takeover offers went as high at $5.20 per share. Shares in Tassal Group and Woolworths are also lower. 
 
Gold and the dollar

Gold is trading at $US1,219 an ounce.
The Australian dollar is buying 87.35 US cents.