Australian Stock Market Report: Lunch Report

The market managing to regain some ground in the last hour of trade after being down near 1pt in the first hour.

Most of the gains in the last hour have been from the big four banks. After opening down between 1-2.5pct, their now only down a few points. The financial sector only down 0.3pct. Westpac Banking Corporation (WBC) up 16cents to $27.46, and Bendigo and Adelaide Bank Limited (BEN, formerly Bendigo Bank) steady at $9.90 ahead of release comments from its annual general meeting being held today.

The worst performing sector so far today has been the consumer discretionary sector off 0.9%, as the lacklustre session on Wall Street on Friday has taken some of the shine out of the US recovery story and put pressure on expected spending the discretionary space. Fairfax Media (FXJ) off 3.5pct to $1.74 and diversified entertainment company News Corporation (NWS) off 2.4pct to $2.36

After a strong run on Friday the retail sector also lower with Wesfarmers (WES.AU) giving back some of Friday's gains off 0.6pct to $28.09, Wesfarmers rival in the retail space, Woolworths (WOW) off 0.7pct to $29.10.

The materials sector hit by lacklustre interest commodity stocks off 0.5%. Shares in BHP Billiton (BHP) currently off 36cents to $39.84while Rio Tinto (RIO) off 60cents to $66.90.

The energy sector slightly lower after the oil price continued to slide on Friday night. Crude oil prices fell in response to end-week profit-taking and a firmer greenback. The Nymex oil contract fell by US69c to US$80.50 a barrel.

Coal players helping the energy index to limit its losses off by 0.57pct. Felix Resources Limited (FLX) the coal mining and exploration company looks like signing the deal to sell itself to a Chinese state owned coal firm for $3.5Billion. This ownership deal has helped Felix rise 3.8pct to $17.40. Coal & Allied Industries Limited (CNA) is a subsidiary of the Rio Tinto Group up 3.18pct to$77.28.

Woodside Petroleum Ltd. (WPL.AU) pulling the index lower WPL's share price at noon was off 1.6pct to $50.97, after opening down over 2pct, still feeling the pain from last week's lower production report.

The Australian Bureau of Statistics June quarter Producer Prices were released. Producer Prices are the prices for raw materials paid by secondary producers showed a 0.1pct rise in the quarter below market expectations. Prices were only 0.2pct higher than a year earlier. The lower than expected read on producer prices helping take some of the heat out of the inflation expectations for Wednesday's Consumer Price data for the same quarter.

The Australian dollar slightly higher by noon, 1 Aussie dollar now worth US92.41c and €61.50c.