daytrades april 29 afternoon, page-2

Thanks HLL

The Australian share market was down almost one per cent at noon following ANZ's lower than expected first half profit and weakness in the resources sector.

All Ordinaries index had slipped 35.1 points, or 0.72 per cent, to 4,819.1 points.

Analyst said "Overhanging the resources sector is the Henry Tax Review and the uncertainty about resources rent tax. ANZ's result, which I thought was very good, was a bit lower than what people had expected."

In economic news: According to data released by Australian Property Monitors, the national median house price rose 3.1% to $542,800 in the March quarter. This was a less than the 4.8% rise experienced in the December quarter, as rising interest rates and the end of the first home buy boost starts to have an impact on prices.

Iron ore miner Fortescue Metals Group Ltd (FMG) has been forced to pay damages to shipping contractor Zodiac Maritime after the company lost a court battle in the UK over the suspension of a number of contracts. The miner says it will pay Zodiac US$78 million to cover charges foregone by the contractor, and any future revenues foregone over the full contract term. Fortescue says the litigation commenced when the company suspended a number of charter contracts in 2008 due to turmoil in international freight and iron ore markets. The miner says other shipping contracts that were in dispute were negotiated and settled prior to the court hearing. These settlements have enabled Fortescue to lock in shipping rates at much lower levels than originally contracted. Fortescue says the contract with Zodiac has now been terminated.

The miner says it had provided US$20 million in its first half year 2010 accounts for the Zodiac contract; however this will now be expanded by a further US$58 million.

Fortescue says this will take the total shipping position to a loss of around US$100 million for fiscal 2010.

Fortescue Metals Group earned $626.13 million for fiscal 2009.

Biopharmaceutical company Biota Holdings Ltd (BTA) says royalties of its Relenza flu drug are expected to fall by 70% in the March quarter. The company says UK pharmaceutical giant GlaxoSmithKline, who markets the drug, has reported sales of $138 million for the three months to March 31, which would yield royalties of about $9.7 million, a far cry from the $32.3 million a year ago. Biota says this may signify that governments are not buying as much of the drug to treat swine flu as the threat of this flu spreading lessens. Shares in Biota Holdings plunged 16.45% to $1.60.

All but one sector is in the red at midday, the only sector in positive territory is the Consumer Staples index, up 19 points to 7,476.

In a sea of red the worst performing sector at midday is the Telecommunications index, down 13 points to 1,073.

Gold is trading at US$1,166.40 an ounce and the Aussie dollar is trading at 92.36 US cents.

MORNING TRADES

ETH: .355c/.37c
MBA:.032c/.035c and .038c/.041c
BTA: $1.65/$1.59 LOST
PVE: .36c/.38c
Watching: CAP,HUN and PVE

http://www.marketwatch.com/
http://www.thebull.com.au/
http://www.news.com.au/business/