Sydney, Oct 3, 2007 (ABN Newswire) - Australian shares were flat at midday. The S&P/ASX200 index is up one point to 6,661 and on the futures market the SPI- 200's down 7.

In economic news, Australians have been spared an interest rate rise with the Reserve Bank leaving the official cash rate at 6.5 percent. It comes as no surprise given the global credit squeeze and uncertainty over the health of the U.S. economy.

In company news this hour, Territory Resources has spent $2.75 million to increase its stake in Matilda Minerals. Territory has increased its interest to 8.6 percent after acquiring 50 million shares at 55 cents through a placement. Matilda which mines mineral sands on the Tiwi Islands north of Darwin says the money will be used for exploration on Queensland's Cape York Peninsula. The two companies already have a bond with Territory chairman Michael Keirnan a non-executive director of the Matilda board. Shares in Territory Resources are down 4.66 percent to $1.125.

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Catalogue distributor Salmat has updated its half year trading results saying it expects lower a net profit for the six months to December 31 compared to the same period last year. The expected result excludes any contribution from Salmat's proposed acquisition of HPA Limited. Salmat says the results will reflect higher costs arising from the development and launch of Salmat's new online digital media as well as expected restructure and redundancy costs. Shares in Salmat down 2.61 percent to $4.48.

Turning now to market indices, the index posting the biggest gain by percentage points is the Consumer Staples which is up 77 points 8,441. Shares in Woolworths are up 1.73 percent to $30.52. Shares in Lion Nathan and Coles Group are also higher.

The worse performing index by percentage points in the Materials, which is down 179 points to 15, 641. Shares in Aquarius Platinum are down 2.47 percent to $38.23. Shares in Rio Tino and BHP Billiton are also lower.

In Tokyo, the Nikkei is down 19 and in New Zealand the NZ-SX-50 is down 13.

Gold is currently trading at $734.7 US an ounce and one Australian dollar's buying 88.92 U.S cents.


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

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