Profit Taking Sheep Push Aus Internets Down
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Australian Internet and technology counters fell Wednesday morning as investors mimicked the profit taking seen in the US Tuesday. Tuesday saw the Nasdaq's biggest fall in 2 months, dropping over 4% or 200.61 points to 4,706.63.
Basking in the glow of its deal with the Seven Network, ISP and aspiring Multimedia Service Provider Access1 was one of the few Internet companies up Wednesday morning. At midday Access1 was up 2% at Aus $1.47.
Australian Internet heavyweights Looksmart (LOK), Ecorp (ECP) and Libertyone (LIB) fell 6.5%, 6.1% and 5.7% respectively in the US inspired Internet sell down. Expect a turnaround on Libertyone in the afternoon as news of its investment in Chinese trade portal China Products Ltd. hits the market.
Online wine retailer, Wine Planet (WIN), rose 7.6% to 42.5 cents Wednesday morning, bucking the down turn. No deals or news appear to be in the works despite some heavy volumes went through. Wine Planet management said they thought investors are now reassessing the significance of their recent deal with Fosters Brewing Group (FBG). Wine Planet announced first half results just after midday.
Internet advertising company BMC Media (BMC) fell 2.17% to $6.75 at midday. BMC beat its prospectus forecasts for gross billings but was caught up in Wednesday morning's sell off. Recently listed Internet media buying company, Emitch (EMI) also fell, losing 14.7% to $2.43.
Australian miners come net stocks were the big winners Wednesday. Pilbara Mines (PIL) announced it has raised $1.8 million through a share placement to HIH Insurance (HIH). The capital raised will be ploughed into aspiring broadband provider Request DSL. Request recently signed a memorandum of understanding with international networking giant Cisco Systems (CSCO) to use Cisco or its nominated partners to roll out their Australian broadband network. Pilbara rose 1.3% to $2.33 in the morning session.
Menzies Gold (MZG) made its foray into the hot than hot business to business e-commerce sector Wednesday, taking a 20%, $2.5 million stake in Market Boomer Ltd. Market Boomer will list on the , Australian Stock Exchange in short order according to today's announcement. Menzies jumped 57.9% to 30 cents after announcing the Market Boomer investment.