Sydney, Sept 21, 2007 (ABN Newswire) - Australian shares fell 0.2 per cent as firms such as U-S exposed Westfield declined on fresh worries about inflation in the world's biggest economy.

At Midday the S&P/ASX200 index is down 26 to 6,367, and on the futures market the SPI 200's down 30.

In economic news, the Australian Bureau of Statistics data reports new motor vehicle sales fell 1.9 per cent on a seasonally adjusted basis in August. 86,096 vehicles were sold during the month, compared to 87,763 in July. August sales were 8 per cent higher than the same month a year earlier.

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In company news this hour, shares in Telstra are down 1.14 per cent to $4.35. Just weeks after the expanding salary of the chief executive, Sol Trujillo, Telstra's board is pushing for a 50 per cent increase in the cash available to pay its directors. The telecommunications giant revealed yesterday that the board, is to press shareholders at the company's annual meeting in Sydney in early November for an extra $1million to be set aside to cover directors' fees. If approved, that will take the cash pool to $3million from its limit of $2million. Telstra's net profit highlight was in 2005.

Shares in Sky City Entertainment are up 26.9 per cent to $4.67. New Zealand casino company Sky City Entertainment says it's received an approach for a possible takeover, sending its shares surging 26 per cent to a record high. The company says the party, which it hasn't named, expressed an interest in acquiring 100 per cent of the company. Sky City's board of directors are yet to make a decision regarding the merits of the approach. Sky City has a near monopoly in New Zealand and two establishments in Australia, as well a chain of cinemas. Sky City Entertainment's best net profit over the past five years was in 2006.

Turning now to market indices. The index posting the biggest gain by percentage points is the Materials, which is up 18 points to 14,562 . Shares in Centamin Egypt are up 9.96 percent to $1.38. Shares in Moly Mines and Resolute Mining are also higher.

The worse performing index by percentage points in the Telco, which is down 19 points to 1,548. Shares in Singtel are down 3.69 per cent to $2.87. Shares in Telstra IRS and Telstra are also lower.

In Tokyo, the Nikkei is down 72 and in New Zealand the NZSX-50 is up 49.

Gold is currently trading at $735.30 US ounce and one Australian dollar's buying 86.87 U.S cents.


Source: Finance News Network © 2007 http://www.finnewsnetwork.com.au

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>>> SKY CITY ENTERTAINMENT GROUP LIMITED.
>>> TELSTRA CORPORATION LIMITED.