The Australian share market at noon on Wednesday was sharply lower, after overseas markets fell on concerns about the Greek debt situation.
Local investors also showed anxiety over the potential impact of the federal government's proposed resource tax and continued economic belt-tightening by China.
All Ordinaries index was down 89.5 points, or 1.88 per cent, at 4,663.8.
Analyst said The local market was feeling a great deal of uncertainty stemming from the troubles in the eurozone, the potential impact of Australia's Henry tax review on resources stocks, and China's moves to curb inflation and property prices, which could slow China's economy. The market's on the back foot today. There are some pretty solid headwinds facing it this morning, the two flashpoints being the eurozone and China. Uncertainty is the key theme from the Henry tax review."
In economic news: Activity in Australias services sector expanded in April, as sales, new orders and employment all improved. The Australian Industry Group/Commonwealth Bank performance of services index rose 3.4 points last month to a read of 52.3. The level of 50 separates expansion from contraction.
Origin Energy Ltd (ORG) has warned that the proposed new mining tax could add significant costs to its liquefied natural gas joint venture with ConocoPhillips. The company says the uncertainty attached to the planned 40% super profits tax could also affect the projects schedule. Origin and ConocoPhillips want to make a final investment decision on the project by the end of the year and start shipping LNG by late 2014. Shares in Origin Energy fell 2.76% to $15.13.
Macarthur Coal Ltd (MCC) has forecast a full year profit in the range of $103 to $113 million, down almost 39% on last years result. The profit downgrade comes as the miner today announced it has extended the acceptance period for its takeover offer for Gloucester Coal until May 27. CEO and Managing Director Nicole Hollows says the guidance is based on Macarthur achieving its targeted annual sales volume of 4.8 to 5 million tonnes. Meanwhile, Peabody Energy has asked for more information on the proposed resources super-profit tax after completing its due diligence on Macarthur Coal yesterday. Macarthur Coal shares are down 3.96% at $13.08.
The best performing sector at midday is the Consumer Staples index, up 58 points at 7,367.
The worst performing sector is the Energy index, down 445 points to 14,615.
Gold is trading at US$1,167.80 an ounce and the Aussie dollar is trading at 91.04 US cents.
MORNING TRADES
HUN: 70c/73c BSE: Bought @10c FMG: $3.95/$4.05(Always too early to sell)
