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Aussie shares were lower by lunch after retreating in late morning trade. Banks led an early charge before being overriden by weakness among the heavyweight miners and property trusts.

The Australian dollar reach seven-week highs ahead of a jobs report tomorrow that is expected to reveal the sixth consecutive month of rising employment.

In economic news, the Westpac-Melbourne Institute consumer sentiment index rose 0.3 index points to 117.3 points in March despite last weeks RBA interest rate hike.

Meanwhile, according to the the Australian Bureau of Statistics the number home loans dropped 7.9% in January on the back of increasing borrowing costs and the diminishing First Home Buyers grant. It was the heaviest fall in almost 10 years and below an expected rise of 2%.

At noon, the All Ords had lost 13.5 to 4,815.8, while the ASX/200 shed 15.0 to 4,805.1. Over 1.1 billion shares worth around $2.2 billion had changed hands.

Miners BHP Billiton and Rio Tinto took a combined 7.2 points off the index. Their shares were down 1% and 1.1% to $42.96 and $75.32 respectively.

The Materials and Resources sector was down 0.7% after a mixed night for metals prices.

Atlas Iron shed 1.8% to $2.17 after the announcement it would merge with junior explorer Aurox.

Aurox shares had spiked 144.4% to 66c.

Lihir rallied 2.4% to $2.96 despite the price of gold closing lower overnight. The Papua New Guinean focused miner’s CEO said PNG and the Ivory Coast offer lower levels of sovereign risk to mining companies than Australia.

Building materials company James Hardie advanced 14c, or 1.9% to $7.68.

Other mid-caps to make ground included Orica, Amcor, Onesteel and Sims Which were up between 0.8% and 1.2%.

Property Trusts underperformed, with the sector down 1.8%.

Westfield and Stockland lost 1.8% and 1.7% to $12.08 and $4.11.

GPT and Mirvac fell 2.5% and 2.6%.

The banks displayed strength early on, however stumbled following the release of the home loan figures.

NAB was the worst performer, down 13c, or 0.5% to $26.74, while CBA was 1% higher at $55.74.

Westpac and ANZ were relatively flat as the Banks and Financials weakened 0.3%.

Insurer QBE gained 26c, or 1.2% to $21.36.

The Energy sector slid 0.3% in a mixed morning. The price of crude weakened, however remained above US$81 a barrel.

Woodside contributed little, adding 9c to $45.31. 

Origin and Santos were the major drags having dropped 1.6% and 1% to $16.67 and $13.94.

Uranium miner Paladin slumped 11c, or 2.9% to $3.67, while oilfield-engineering company WorleyParsons rose 2.2% to $25.72.

Leighton and Brambles dipped slightly as the Industrials sector lost 0.3% overall. 

Alesco slumped 29.8% to $3.20 after the company said its full-year profit would be weaker than expected. UBS and Citigroup downgraded their ratings on the stock in broker reports this morning.

Asciano and Qantas countered with gains of 1.1% and 1.4% respectively.

Consumer Staples shed 0.5%. Wesfarmers lost 45c, or 1.4% to $32.26 and Coca-Cola Amatil dropped 21c to $11.25.

Foster’s added 6c, or 1.1% to $5.44.

Telstra gained 6c to $2.97 after the federal opposition said yesterday that it would resist the Government's proposal to split the company. The Telecommunications sector added 2.1%.

Computershare’s 2.4% rally to $12.31 led the Information Technology sector 1.5% higher.

Around the region, the Nikkei 225 added 8.6 to 10,576.2, while the NZSE50 edged 0.5 higher to 3,213.7. The Straits Times Index gained 7.9 to 2,847.5.

Spot gold was trading at US$1,120.79 per ounce, while the Aussie was buying US$0.9135.

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Simpson retires as Aristocrat chairman
Aristocrat Leisure announced the impending retirement of three long standing directors in an update on its board succession planning and renewal programme. The company said David Simpson, Penny Morris and Bill Baker have indicated they would step down from their respective positions.

At midday, Aristocrat shares were up 4c to $4.46.

Adamus to tap the market for $30.5m
Adamus Resources has said it would tap the market for an extra $30.5 million, via a placement and rights issue. The junior miner said the funds would be put towards providing additional capital and accelerating exploration activities at the company’s Southern Ashanti Project in Ghana.

At noon, Adamus shares were trading down 2c to 38c each.

Aurox and Atlas Iron set to merge
Aurox Resources and Atlas Iron have agreed to merge via scheme implementation agreement (“SIA”) that would see Aurox shareholders receive one Atlas share for every three Aurox shares held. Aurox said the merger implies a price per Aurox share of $0.74 based on Atlas’ last closing price of $2.21, representing a premium of 173% on Aurox's last share price of 27c.

Half way through the day, Aurox shared had surged 39c to 66c and Atlas shares were down 4c to $2.17 respectively.

Seek lifts stake in JobStreet
SEEK said it has increased its stake Malaysian based provider of employment websites JobStreet Corporation Berhad from 10.1% to 21.3% after paying a consideration of $23.5 million. The company said JobStreet has strong market positions in Malaysia, Singapore and the Philippines, as well as a significant shareholding in the leading Taiwanese online employment provider 104 Corporation.

By lunchtime, Seek shares were unchanged at $7.55.

Southern Cross refinances $375m facility
Southern Cross Media Group announced that Southern Cross Media Australia Pty Limited (“SCM”) has entered into an agreement with a consortium of six banks for a refinancing facility of $375 million in place of its existing business level debt facility. The company said the facility is for a four year term and that once completed would position SCM with a conservative and sustainable level of debt with long dated maturity.

At midday, Southern Cross shares were up 5c to $2.10.

Aristocrat Leisure Limited (ALL) announced the impending retirement of three long standing directors in an update on its board succession planning and renewal programme. The company said David Simpson, Penny Morris and Bill Baker have indicated they would step down from their respective positions.

Aristocrat said Mr Simpson indicated that after six years in the role he would resign as chairman of the company upon the appointment of a successor and also retire as a director.

The company said planning for a replacement chairman has already commenced, with an announcement expected to be made towards the end of 2010.

Aristocrat said Mrs Morris has also indicated that she would retire from the board at the conclusion of the AGM after originally being nominated in August 2003 in order to focus on her other board responsibilities.

Meanwhile, the company said after 12 years Mr Baker wishes to retire from the board this year, with the precise timing yet to be determined.

Aristocrat said as part of the ongoing process of Board renewal, Dr ID Blackburne and Mr SW Morro were recently nominated as directors’ elect, with their appointments subject to certain pending regulatory pre-approvals.

Mr Simpson said his decision to step down later this year along with Mrs Morris and Mr Baker’s retirements are consistent with the company’s interests in ensuring appropriate board renewal.

”The board considers that these retirements, and the anticipated new appointments, will allow us to continue to refresh the Board by bringing additional experiences and new perspectives especially in respect of the critical US market,” Mr Simpson said.

”These changes are particularly important as we guide the Company through its critical 3-5 year turnaround programme.”

As at 1114 AEDT, Aristocrat shares were up 4c to $4.46.

Adamus Resources Limited (ADU) has said it would tap the market for an extra $30.5 million, via a placement and rights issue. The junior miner said the funds would be put towards providing additional capital and accelerating exploration activities at the company’s Southern Ashanti Project in Ghana.

Under the terms of the capital raising, Adamus said it would place 25 million shares at 36c per share, to raise $9 million.

A further $21.5 million would be raised from a 1-for-5 renounceable rights issue, also at 36c per share.

”The Company will now have financial capacity to undertake additional exploration in 2010 aimed at expanding our existing Ore Reserve and Mineral Resource base as we develop the mine,” managing director Mark Bojanjac said.

“To date, Adamus is on time and on budget in its construction of the Project. As such, we are well on track to becoming a 100,000+ oz pa gold producer within 12 months as planned.”

At 1059 AEDT, Adamus shares were trading down 2.5c to 37.5c each.