The Australian share market at noon has slipped back from early highs, weakened by the slump in Telstra shares and worse than expected housing data.
All Ordinaries rose 16.8 points, or 0.37 per cent, to 4552. Some analysts are saying "Telstra are the main reason it's falling, they're taking the most points out of the index ... they are the big worry. Housing numbers falling had a massive impact on the market,"
Telco Telstra Corporation Ltd (TLS) is facing a break-up of its businesses after Senator Stephen Conroy announced historic reforms to the regulation of the telecommunications industry.
The Minister for Broadband, Communications and the Digital Economy says the reforms will drive future growth, productivity and innovation across all sectors of the economy. Mr Conroy says the reforms address the structure of the telecommunications market and provide Telstra with the flexibility to choose its future path. He says it is the Governments clear desire for Telstra to structurally separate on a voluntary and co-operative basis. Mr Conroy says if Telstra chooses not to structurally separate, the legislation provides for the Government to impose a strong functional separation framework on Telstra. Telstra shares fell 4.31 per cent to $3.11.
Airport owner and operator Macquarie Airports (MAP) says the Danish Civil Aviation Authority has approved a long term agreement covering the future level and structure of aeronautical charges reached between Copenhagen Airports and its airline partners.
Macquarie says the agreement covers the period from October 1 2009 to March 31 2015.
The company says prices will be kept at current levels for 18 months and then increase annually based on one per cent above the yearly increase in the Danish Consumer Price Index for the next four years.
Scrap metal management company Sims Metal Management Ltd (SGM) CEO Daniel Dienst says the company is on the look-out for acquisition opportunities suggesting that there could be more consolidation in the scrap metal market.
According the a report by The Dow Jones Newswires Mr Dienst says there will be a culling of weak and inefficient companies from the herd and Sims will be looking for opportunities to assert itself in the marketplace.
Sims Metal Management recently reported a $105.3 million loss for the year to June 30 compared with a profit of $440.1 million the year before.
The best performing sector at midday in is the Consumer Discretionary index up 20 points to 1,547. Shares in Austar United up 7.14 per cent at $1.275. Shares in Retail Food Group and Harvey Norman are also higher at noon.
The worst performing sector at midday is the Telco Services index, down 46 points at 1,085. Shares in Reverse Corp down 4.55 per cent to $0.525. Shares in Telstra and Telecom of New Zealand are also lower.
Gold is trading at $1001.20 US an ounce and the Aussie dollar is trading at 86.12 US cents.
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