The Australian share market was slightly lower at noon as profit takers moved in after last week's strong rally.
Companies with exposure to the United States economy bucked the trend by showing strong gains.
All Ordinaries had lost 18 points, or 0.39per cent, to 4675. Banks were broadly weaker, losing between 0.1 and 1.3 percent, with top lender National Australia Bank (ASX: NAB.ax) falling 1.3 percent.
Some analysts are saying "Last week was up over two per cent ... so I think it's just pause on a strong upward march. There's clear evidence now that the rate of deterioration is slowing in the US, and there are glimmers that it's going to be a positive growth situation, maybe even in the third quarter, so they're very upbeat over there,".
The Australian Bureau of Statistics showed that sales of new vehicles surprisingly rose 0.3 per cent in August as analysts had expected a decline. 75,388 vehicles were sold in August but that result is 6.2% lower than a year ago.
Qantas (QAN) released its annual report today, it emerged that former chief executive Geoff Dixon was paid $10.7 million in the 2009 financial year despite only serving 5 months in the role before being replaced by Alan Joyce. The salary was just 12 percent lower than his total salary for 2008 and could be controversial for Qantas shareholders.
The report also showed that former chief financial officer Peter Gregg was paid $4.9 million despite being in the role only 3 months. In other news from the annual report, Qantas said that the global economic outlook remains uncertain and it is yet to see substantial improvements in business conditions. Despite the dull outlook Qantas shares are 1.08% higher at $2.81 at midday.
Forestry company Gunns Ltd (GNS) says it has submitted a conditional proposal to the liquidator of Timbercorp to acquire certain forestry assets. Gunns says it has held discussions with potential providers of debt and a joint venture partner in relation to the potential acquisition.
The proposal will involve Gunns, together with a joint venture partner, acquiring the land, trees and forestry operations businesses from Timbercorp.
Global miner Rio Tinto Ltd (RIO) says the long term outlook for aluminium remains robust however it remains cautious in the short term. The mining giant also says cash preservation remains a key priority for its aluminium business. In an analyst presentation, Rio’s aluminium division says that the long term story for aluminium continues to be attractive with 4.1 per cent growth in aluminium expected over the next two decades.
The best performing sector at midday was the Industrials index which gained 34 points to 3,888. Shares in Brambles gained 3.34 per cent at $8.05. Shares in AJ Lucas and Macquarie Infrastructure are also higher at noon.
The sector with the biggest loss at midday is the Financials excluding the Real Estate Investment Trust index, down 45 points at 5,432. Shares in Insurance Australia Group lost 2.85% to $3.75. Shares in Bendigo and Adelaide Bank and AMP are also lower.
Gold is trading at $1004.75 US an ounce and the Aussie dollar is trading at 86.59 US cents.
