News: Midday: Aus shares come off early gains

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US markets higher on earnings reports provided a positive lead for the local bourse with the Australian share market opening higher, trading 0.17 per cent up at noon. The release of the RBA board minutes held no surprises with the central bank repeating the Aussie dollar is too strong to rebalance the economy and the need for banks to maintain the strictest of lending standards. Meanwhile Chinese GDP data expected later today could have some influence on afternoon trade. 

 

The S&P/ASX 200 index is 11 points up at 5,330. On the futures market the SPI is 5 points higher. 

 

Economic news

The ANZ/ Roy Morgan weekly index of consumer confidence has declined 1.9 per cent to 111.6. While expectations of economic conditions linger at below average conditions the index has been broadly steady for the past ten weeks indicating consumer confidence remains stable. 

 

Company news

 

Veda Group Limited (ASX:VED) has responded to media reports that Pacific Equity Partners was going offload it’s 31.5 per cent stake in the company saying it has been advised that PEP is not currently undertaking the sale. Media reports had suggested that that Pacific Equity Partners was shopping its stake out to the highest bidder however prices were unacceptable and the more that $600 million worth of shares was taken off the table. Shares in Veda are trading 4.74 per cent lower at $2.21. 

 

Newcrest Mining Limted (ASX:NCM) has reaffirmed full year guidance despite reporting a 12 per cent fall in gold production for the September quarter. Newcrest says it has achieved an average realised gold price of of $1,393 per oz The miner posted higher maintenance costs and lower gold grades during the quarter. However mine production at Cadia East ramped up 39 per cent for the September quarter. Cadia East Panel Cave 2 commenced commercial production on October 1. The company continues to focus on lifting production and performance at the Lihir mine. Shares in Newcrest are trading 0.05 per cent weaker at $9.80. 

 

 Best and worst performers

The best performing sector is real estate investment trusts, gaining 0.6 per cent to 1,097. Shares in Investa Office Fund have risen 1.8 per cent and are trading at $3.40. Shares in Cromwell Group and Federation Centres are also stronger. 

 

The worst performing sector is energy, falling 0.03 per cent to 13,468. Shares in Worley Parsons have fallen 3.4 per cent, trading at $13.62. Shares in Karoon Gas and Liquefied Natural Gas are also lower. 

 

Gold and the dollar

Gold is trading at $US1,246 an ounce.

The Australian dollar is buying 87.86 US cents.