Following weak overseas leads, the Australian share market has fallen over 1 per cent at noon. The major miners and banks are leading the declines, ANZ Banking Group (ASX:ANZ) down 1.5 per cent, despite posting a record first half profit. Investors are looking to the rising Australian dollar, hovering at just above 109 US cents, ahead of the Reserve Bank of Australia’s interest rate decision this afternoon.
The S&P/ASX200 index has fallen 53 points and is 4,772 at noon. On the futures market the SPI is 47 lower.
Company news: Shares in Fairfax Media Ltd (ASX:FXJ) sunk over 9 per cent this morning after the company issued a warning on its full year revenue and profit amid subdued market conditions. The publisher has reported a 4.5 per cent fall in second-half revenue, at the same time that costs grew 1 per cent. Fairfax says it now expects full year earnings before interest, tax, depreciation and amortisation, excluding significant items, to drop from last years figure of $639 million to around $600 million. Shares in Fairfax Media have slumped 7.25 per cent at noon and are trading at $1.215.
Gaming machine company Aristocrat Leisure Ltd (ASX:ALL) says its net profit could jump by as much as 20 per cent in the 2011 financial year, assuming an average Aussie to US dollar exchange rate of $1.00 for the full year. Speaking at Aristocrat’s annual general meeting today, CEO Jamie Odell told investors that guidance of between 10 to 20 per cent growth assumes stronger operational performance, partially offset by foreign exchange translation, higher interest costs and a higher effective tax rate. In March the company said it was shifting its focus outside of one-time slot machine sales and target earnings derived from ongoing revenues, such as systems support and services to casino customers. Shares in Aristocrat Leisure have lifted 0.73 per cent at noon and are trading at $2.75.
To the best and worst performers and all are trading in the red: The sector with the smallest losses is Utilities, easing 13 points to 4,315. Shares in Challenger Infrastructure Fund have gained 2.27 per cent and trading at $1.125. Shares in SP AusNet and AGL Energy are both in positive territory at midday. The worst performing sector is Materials dropping 188 points to 13,784. Shares in Sundance Resources have sagged 5.13 per cent and trading at $0.37. Shares in Arafura Resources and Lynas Corporation have also declined at noon.
To New Zealand: The NZSX50 is 1 point higher. Taking a look at the top four stocks by turnover, ANZ is at the top of the list with stock down 0.76 per cent at $32.60 followed by Westpac, Telecom Corporation of New Zealand and Fletcher Building
Gold and the dollar: Gold is trading at $US1,541 an ounce and the Aussie dollar is buying $US1.0923 cents.
