News: Midday: Aus shares trade lower

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Despite positive leads, the Australian share market pushed lower on open and is 0.1 per cent down at noon.

 

Incitec Pivot made gains on the back of reporting a positive profit result for the year.

 

Commonwealth Bank and Westpac clawed back some of yesterday’s losses, while the materials sector fell to the morning’s worst performer. 

 

The S&P/ASX 200 index is 9 points down at 5,515. On the futures market the SPI is 10 points lower. 

 

Economic news

The Australian Bureau of Statistics has announced a 1.5 per cent increase in Residential property prices across Australia for the September quarter, in terms of cities, Sydney saw the greatest increases, up 2.7 per cent.

 

ANZ Banking Group (ASX:ANZ)-Roy Morgan consumer confidence survey has shown optimism is on the rise with a 0.2 per cent increase for the week. 

 

Company news

 

McAleese Limited (ASX:MCS) is set to pay $3 million for a 50 per cent equity stake in Heavy Haulage Australia. The transport and logistics company says the move offers significant opportunities to diversify into the attractive infield oil and gas sector. The deal also includes an option to acquire the remaining 50 per cent in 2 to 5 years. Shares in McAleese are trading up 2.56 per cent at $0.40. 

 

Pacific Star Network Limited (ASX:PNW) will acquire Morrison Media for $10.8 million. The media company aims to diversify its offering and will add Morrison Media’s magazine titles including frankie, Smith Journal and Surfing Life to its ranks. Shares in Pacific Star last traded at $0.25

 

Best and worst performers

The best performing sector is telco services, gaining 0.8 per cent to 2,027. Shares in Spark New Zealand Limited (ASX:SPK) have risen 2.46 per cent and trading at $2.91. Shares in TPG Telecom Limited (ASX:TPM) and Telstra Corporation Limited (ASX:TLS) are also stronger. 

 

The worst performing sector is materials, falling 1.3 per cent to 9,284. Shares in Beadell Resources Limited (ASX:BDR) have fallen 10.71 per cent, trading at $0.25. Shares in Atlas Iron Limited (ASX:AGO) and Medusa Mining Limited (ASX:MML) are also lower.

 

Gold and the dollar

Gold is trading at $US1,155 an ounce.

The Australian dollar is buying $US0.8636