Half-time round-up:Australian shares were trading higher at...

Half-time round-up:

Australian shares were trading higher at lunchtime but early gains had faded as end-of-the-week profit-taking kicked in.

At 1 pm the ASX 200 was ahead 3 points or 0.06% at 4940 and well off the morning high of 4958 as modest losses among some big banks, consumer staples and health stocks weighed against gains in telecoms, energy and mining.

Building construction eased last month after two months of growth, according to a report this morning. The AIG/HIA performance of construction index fell 4.1 points to a seasonally-adjusted 48.7. Readings under 50 indicate contraction.

"Firms noted that operating conditions remained difficult, with tight credit conditions, subdued client demand and project delays resulting in intense competition to secure existing contracts," said a report quoted on Fairfax. "Residential builders also indicated that higher interest rates and weaker first home buyers demand had dampened both activity and incoming new business during the month."

In company news, the bidding war for Macarthur Coal hotted up again this morning after New Hope Corporation joined in to make it a three-way battle. New Hope has offered 2.7 of its shares for each Macarthur share. Macarthur shares were recently up more than 9% in response.

Newcrest is set to build "the largest underground mine in Australia" after approving the Cadia East gold and copper deposit near Orange in NSW. Newcrest said the deposit was one of the world's largest and would underpin production from the Cadia Valley for at least 30 years.

Key Asian markets were little changed. Japan's Nikkei was flat at lunchtime and Shanghai was up 0.1%. Dow futures were recently at -7.

Crude oil futures rallied 20 cents this morning to $85.78 a barrel. The spot gold price was 20 cents lower at $1,150.50 an ounce.


A slow morning here boosted only by the turnaround in ICN and my fat-fingered doubling of my holding. Lady luck was with me today. Small position taken in AEJ but no adrenalin rush there. MGR and BAU from yesterday are edging higher.