News: Midday: ASX swings to flat after a shaky start

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Following a positive lead from US markets the Australian sharemarket has bucked off an earnings shock from Westpac before giving away some of those gains to be flat at noon. 

 

Westpac delivered a flat first half profit report and lifted its dividend by just 1 cent on the prior half sending its shares as much as 4 per cent lower in morning trade. 

 

The S&P/ASX 200 index is 5 points up at 5,819. On the futures market the SPI is 4 points higher.  

 

 

Company news
 

Tabcorp Holdings (ASX:TAH) says third quarter revenue is up 3.3 per cent on the same time last year. The result was driven by wagering and media business and has lifted the year to date revenue by nearly 6 per cent. The Soccer World Cup added to revenue growth whilst the Keno business slumped 14 per cent in the quarter. Gaming services business was flat. Shares in Tabcorp are trading 0.83 per cent higher at $4.87. 

 

Ruralco Holdings (ASX:RHL) says managing director John Maher will step down after almost 9 years with the company. General Manager of Rural Retail, Travis Dillon will become acting GM until a replacement is sold. Ruralco also said that its on-track for a strong first half result. Shares in Ruralco are trading up 1.1 per cent at $3.67. 

 

Best and worst performers

The best performing sector is materials, gaining 1.7 per cent to 9,635. Shares in Nufarm have risen 2.83 per cent and trading at $7.64. Shares in Northern Star and Arrium are also stronger. 

 

The worst performing sector is financials excluding REITS, falling 1.5 per cent to 7,756. Shares in Westpac have fallen 3.76 per cent, trading at $35.35. Shares in ANZ Bank and Insurance Australia Group are also lower. 

 

Gold and the dollar

Gold is trading at $US1,183 an ounce.

The Australian dollar is buying 78.06 US cents.