Aussie stocks are trading Little higher at midday although investors are showing caution ahead of the federal governments budget to be handed down by Treasurer Wayne Swan tonight.
While global markets rallied overnight on news of the EUs $1 trillion rescue plan, the Australian share market had already factored in the bailout news into trade on Monday.
All Ordinaries index was down 11 points, or .24 per cent, at 4,611.
Analyst said "The disappointing aspect of the market would have to be the resources stocks, BHP and Rio. The banking sector is doing reasonably well with the leaders of the pack NAB and Westpac. I don't think it will make much difference to the market,"
The best performing sector at midday is the Industrials index, up 42 points at 3,737.
The worst performing sector is the Materials index, down 48 points to 11,801.
Gold is trading at US$1,203.40 an ounce and the Aussie dollar is trading at 90.26 US cents.
Port and rail operator Asciano Group (AIO) says it expects to report a non-cash impairment charge of around $1.11 billion in the second half of the year to June 30, 2010. The company says it will book the impairments following a recommendation from the companys audit and risk committee. However the company says the impairment charges will not have an effect on its enterprise value due to the increase in value in other parts of the business. The impairment charge includes $960 million in goodwill in Ascianos ports business. CEO Mark Rowsthorn says these impairment charges will have no impact on Ascianos underlying business or overall consolidated cashflow and the outlook for the company remains on track. Asciano continues to expect fiscal 2010 earnings before interest, tax, depreciation and amortisation to be around the top end of the previous guidance range of $675 to $700 million. Asciano Group booked a loss of $246.44 million in the year to June 30, 2009. Uranium One has increased its stake in Aussie-based uranium miner Paladin Energy (PDN) sparking speculation that a takeover may be on the way. Paladin has projects in Australia and two operating mines in Africa. It has been speculated for some time that Canadian uranium giant Cameco is to launch a takeover bid for the miner, however as yet nothing has eventuated. On April 30, Paladin advised the market that Uranium One had increased its stake by 1.4% which, on Monday that stake rose to 3%. Uranium One is smaller in size to Paladin, however Reuters says the Canadian miner may draw on recent partnerships with the Russian and Japanese governments. Reuters says the company acquired a 50% stake in the Karatau mine in Kazakhstan from Russias state owned uranium miner last year. In return Russia received a 17% stake in the miner. Reuters reports that Uranium One has also completed a financing deal with a consortium of Japanese companies. Paladin posted a $591.82 million loss in fiscal 09.
MORNING TRADES
RIO: $68.30/$68.85 MBA:.043c/.042c Stop out FMG: Short at $4.40
