Australian Stock Market - Midday 2/28/2011
The Australian market has started off the week a little lower for the fifth day out of the last six. The All Ordinaries index (XAO) is down 0.2 pct or 12.1 pts to 4912.8. Most sectors are in the red at lunch, however the energy sector is gaining quite strongly after a few hours of trade. The price of oil has jumped around 12 pct over the last five sessions.
We are now in week four of the reporting season, and things are really quietening down. Australia's largest rail freight operator, QR National (QRN), posted a $278 million profit for the first half of this fiscal year (July to December 2010), compared to a loss of over $130 million in the previous year. QRN transports coal, iron, agricultural products and other minerals.
U.S markets managed to post some modest gains last Friday after three weaker sessions last week. Aerospace and defence company, Boeing (BA;us) won a $35 billion contract to build 179 new tankers for the U.S Air Force. BA;us has been the sole supplier of aerial refuelling tankers to the U.S Air Force since 1948 and gained by more than 2 pct on Friday after the announcement which was made during prior to the market open.
At lunch, the financial sector is the biggest drag on the market with the big four banks lower by between 0.5 pct and 1 pct and weakness from the insurers. AMP Limited (AMP), and AXA Asia Pacific (AXA) have both gone ex-dividend today, which is resulting in both companies pulling back after a few hours of trade. AXA is paying out a 9.25 cents a share dividend on March 25 while AMP will pay out a 15 cents a share divided on April 8.
Australia's largest retailers are mixed with department store owner, Myer (MYR) down 0.91 pct or 3 cents to $3.27, its competitor David Jones (DJS), up 0.44 pct or 2 cents to $4.60 and Australia's largest specialty retailer, Harvey Norman (HVN) trading flat after posting a $133 million profit last week.
On the economic front today, RP Data-Rismark released its index on home prices which have shown a 1.6 pct fall in January. House prices fell by 1 pct while apartments fell by 2.2 pct. More information will be released in the market close report this afternoon. Inflation data and petrol price data are also released today.
Asian markets are mixed in early trade with Japan's Nikkei 225 index currently down 0.5 pct or 52.39 pts to 10474.37. China's Shanghai Composite index is down 0.4 pct or 11.42 pts to 2867.15. The Hong Kong stock exchange is yet to open for trade today in its first of two daily sessions.
In Japan today, retail sales, and preliminary industrial production numbers are released. This measures the change in the value of output produced by manufacturers and utilities.
Most major Asian markets trade in two separate sessions each day with a generous break in between. This includes Japan, Singapore and Hong Kong markets.
The Australian dollar (AUD) is stronger and buys US101.33 cents.
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