News: Midday: Aus shares fall into the red

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Following Wall St’s fourth straight day in the red, the Australian share market opened lower and is trading 0.6 down at noon. Most sectors are trading in the red ahead of the Reserve Bank of Australia’s decision on interest rates due at 2.30pm.



The S&P/ASX200 index has dropped 24 points to 4,545 at noon. On the futures market the SPI is 20 points lower.



Economic news:



The Australian Industry Group/Housing Industry Association has reported that the nation’s construction industry improved in May, while still remaining below the level that separates expansion from contraction. Last month the performance of construction index lifted by a seasonally adjusted 1.7 points to 39.6.



Company news:



BHP Billiton Ltd (ASX:BHP) has become the first company to produce oil from a well in the Gulf of Mexico since the US government lifted a ban on deep-water drilling. The company’s petroleum division has also received approval and begun drilling a second deep-water well on the field. The US government banned drilling in the gulf in response to the biggest oil spill disaster in US history, following an explosion at the Deepwater Horizon rig in April 2010. Shares in BHP Billiton have eased 0.77 per cent at noon and are trading at $42.67.



Shares in Penrice Soda Holdings Ltd (ASX:PSH) jumped more than 50 per cent in morning trade on news the soda ash and sodium bicarbonate producer has inked a deal for coal seam gas water treatment. Penrice announced today it has formed a consortium with GE Power & Water to provide the Australian coal seam gas industry  with complete brine removal mechanism for its associated water. The partners will focus on building demonstration plants to commercialise technology developed by Penrice. Shares in Penrice Soda Holdings have climbed 50 per cent and are trading at $0.21. 



Best and worst performers:



The best performing sector is Telco Services, adding 6 points to 1,040. Shares in Amcom Telecommunications have gained 1.49 per cent and trading at $0.34. Shares in Telstra and Engin are both stronger at noon. The worst performing sector is Energy falling 187 points to 15,742. Shares in Aquila Resources have dropped 4.79 per cent and trading at $7.56. Shares in Bow Energy and Roc Oil are also weaker at noon.

New Zealand:



The NZSX50 is steady.  Taking a look at the top four stocks by turnover, ANZ is at the top of the list with stock down 1.59 per cent at $27.80 followed by Telecom Corporation of New Zealand, Fletcher Building and Westpac.



Gold and the dollar:



Gold is trading at $US1,544 an ounce. The Australia dollar is buying $US1.0723 cents.