Construction activity rises in first quarter: Midday Roundup

Construction activity increased during the first quarter of the year, according to the latest figures form the Australian Bureau of Statistics.

The figures show total construction work rose by a seasonally adjusted 0.7% to $42.33 billion in the March quarter, although this was below market expectations for a 1.5% rise.

Non-residential building fell by a seasonally adjusted 10.2% to a value of $8 billion, while residential building increased 1.9% to $11.9 billion. Engineering work increased by 4.6% to $22.3 billion.

Construction activity for the fourth quarter was revised from a rise of 0.8% to a rise of 1.4%.

CarSales announces share buyback

CarSales.com.au has announced it will issue an on-market share buyback of up to 10% worth $105.8 million.

This morning the company said the buyback will be based on yesterday’s closing price, $4.60, and will continue over the next 12 months.

“The board considers that it is appropriate to establish the buyback program to give Carsales the flexibility to repurchase shares on an opportunistic basis, particularly in times of market or share volatility”, the company said in a statement.

“The company remains committed to its growth strategy and does not limit the company’s future expansion plans including potential acquisitions, should the board be presented with an opportunity.”

Westfield confirms earnings forecast

Property giant Westfield has confirmed its earnings forecasts for the 2011 financial year despite a hit from the appreciation of the dollar.

The company said funds from operations are expected to be between $1.47 billion and $1.5 billion.

“This rapid and significant increase in the value of the Australian dollar does have an impact on the value of our foreign income when reported to you in Australian dollars,” executive chairman Frank Lowy said in a statement.

“We have been able to maintain our earnings and distribution forecasts through a combination of continued strong performance at the operating level as well as prudent capital and treasury management.”

Zynga to apply for IPO

Zynga, the online social gaming company responsible for the success of Facebook game FarmVille, is reportedly preparing for an IPO.

Such a listing would be the second – after LinkedIn – in what analysts expect to be a wave of social network and tech listings in the biggest rush since the 2000 dotcom boom.

According to All Things Digital, the company is looking at an IPO with a filing to come as soon as next week.

Zynga is currently valued at $US10 billion, but analysts expect that valuation could be higher, especially given how high LinkedIn stocks rose late last week.

This report comes just days after Facebook executive Sheryl Sandberg said Facebook would eventually go public.

Share market flat on weak Wall Street

The Australian sharemarket has opened flat this morning following a weak night on Wall Street, where investors were spooked after Goldman Sachs moved to upgrade its oil price forecast.

The benchmark S&P/ASX200 index was down 28 points or 0.61% to 4600.8 at 12.00 AEST, while the Australian dollar remained flat at $US1.05c.

AMP shares lost 0.58% to $5.11, as Commonwealth Bank shares fell 1.65% to $50.08. NAB lost 1.55% to $26.08 as Westpac dropped 1.6% to $21.49.

On Wall Street, the Dow Jones Industrial Average gained just three points or 0.03% to 12,385.12.

Qantas pilots prepare for potential industrial action

Qantas pilots have filed for a ballot to take industrial action, lodging a claim with Fair Work Australia.

The Australian and International Pilots Association argues it wants to take the action to stop work from going offshore.

“While our international competition flourishes, Qantas has been left to wither on the vine, while management eyes low-cost expansion in Asia,” AIPA president Barry Jackson told media today.

“Qantas is now left with an ageing fleet, a limited route network, and costs which have been cut to the point where it is affecting the product delivered.”