Australian Stock Market - Midday 10/3/2011
The Australian sharemarket is falling for the second straight day with the All Ordinaries index (XAO) 1.2 pct or 58.6 pts lower to 4804.6. Almost all sectors are lower except for the defensive healthcare space.
The country's second largest miner, RIO Tinto (RIO) commenced trading a little later than usual, at 10.19 am (AEDT). RIO is increasing its offer for Riversdale Mining (RIV) to $16.50 a share from the previous offer of $16. RIO is down 2.14 pct or $1.75 to $80.62 while the larger BHP Billiton (BHP) is off by 1.89 pct or 87 cents to $45.13.
The latest offer values RIV at US$3.9 billion. RIV shares are 0.07 pct or 1 cent lower to $15.12. RIO has until March 23 to obtain over 50 pct of the company's shareholder vote. There are two shareholders which combined hold close to a 50 pct interest in the African focused coal miner.
Australia's largest specialty retailer, Harvey Norman's (HVN) Chairman, Mr Gerald Harvey announced his plans on building the largest bulky goods retail centre in Australia yesterday. HVN shares are down 1 pct or 3 cents to $2.96.
The Seven Group (SVW), is apparently suing the Ten Network (TEN) over a potential breach of its contractual obligations after James Warburton's transfer to TEN. Mr Warburton, who was executive of SVW is expected to commence his role as TEN's Chief Executive officer on July 14.
In a media release today, TEN said "...it considers it has acted properly and in a way that is consistent with Mr Warburton's employment obligations and will be defending any proceedings accordingly."
The four big banks started the day mostly stronger, however after a few hours of trade are all in the red. ANZ Banking Group (ANZ) is currently the biggest loser and is down 1.26 pct or 30 cents to $23.47.
On the economic front, Australia's unemployment rate remained unchanged at 5 pct in February 2011. The total number of employed people fell by 10,100 to 11.4 million with all the falls coming from part-time employment, which fell 57,700 to 3.34 million. Full-time employment actually rose by 47,600 jobs to 8.06 million.
Asian markets are mostly weaker with Japan's Nikkei 225 down 1.21 pct or 127.67 pts to 10461.83, China's Shanghai Composite index is down 0.82 pct or 24.57 pts to 2978.60 while Hong Kong's Hang Seng is down 0.26 pct or 61.9 pts to 23748.21.
The Philippines Composite index is one of the few in the region to be trading higher by 0.38 pct or 14.8 pts to 3941.66.
The Southeast Asian country's index has gained a staggering 115 pct since the start of the 2009 calendar year.
The Australian dollar (AUD) fell slightly after the jobs report was released at 11.30am (AEDT) is weaker and buys US100.9 cents.
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