The Australian share market was slightly lower at noon as bank stocks fell from higher opening levels and resources stocks continued their fall on the proposed new mining tax.
All Ordinaries index was down 33 points, or 0.69 per cent, at 4,773 points.
Analyst said "The resources and the banks have eased down from where they started this morning. Clearly you've got the American economy building on its positive momentum, which has got to be good for any US exposed stocks. But in addition to that there is the prospect for higher interest rates later this year in the US, which has got to be beneficial for companies that get their money from over there because the US dollar will get stronger and we will get weaker against it."
Rubber glove maker Ansell Ltd (ANN) has launched a surgery glove in Australia which it describes as the worlds first anti-microbial. According the Australian Associated Press, the new powder-free glove called GAMMEX, carries an anti-microbial coating that has the potential to kill viruses and bacteria within 60 seconds. AAP reports a spokesperson for the company saying that while it is too early to know how much this new product will earn the company, it is expected to be a significant product. Shares in Ansell fell 0.08% to $12.87.
And iron ore explorer Cazaly Resources Ltd (CAZ) has placed its shares in a trading halt ahead of an announcement regarding a capital raising. In a statement to the ASX, the company says its shares will remain in a trading halt until Thursday May 6 or an announcement is made. In December 2009, Cazaly announced that it has raised $2.24 million to fund the ongoing development of the companys Parker Range Hamersley projects. Cazaly Resources shares last traded at $0.63.
US coal giant Peabody Energy has completed its review of the due diligence materials provided by Aussie coal miner Macarthur Coal Ltd (MCC). Macarthur says it made 390 documents available to Peabody, saying that the US coal miner has advised that there are a number of matters where it would like further information or clarification. Peabody Energys offer of $16 a share values Macarthur at $4.069 billion and trumps a bid by Aussie coal miner New Hope Corporation Ltd (NHC). Peabody says it is continuing to work through the impact of the recently released Henry Tax Review on its proposal in particular the proposed introduction of the Resources Super Profits Tax. Macarthur says it recognises that both the outstanding due diligence and the absence of further guidance on the impact of the proposed tax changes provide an environment of uncertainty for Macarthur shareholders. The company says it board is committed to resolving this uncertainty as soon as possible and will seek to engage Peabody as a matter of priority on these issues. Macarthur posted a $168.56 million profit for financial year 2009.
The best performing sector at midday is the Health Care index, up 110 points at 8,577.
The worst performing sector is the Materials index, down 181 points to 11,804.
Gold is trading at US$1,180.70 an ounce and the Aussie dollar is trading at 92.58 US cents.
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