MIDDAY REPORT
(12.00pm AEST)

After a stronger start to trade today, the Australian sharemarket has crept into negative territory with the All Ordinaries index (XAO) down 0.1 pct or 6.7 pts to 4556.8. Most sectors are lower with the exception of the industrials, telcos and healthcare stocks.

Australia's largest miner, BHP Billiton (BHP) is down 0.51 pct or 22 cents to $43.24 while the smaller RIO Tinto (RIO) is 1.18 pct or 95 cents lower to $80.48. Gold producer Newcrest Mining (NCM) is up 1.63 pct or 62 cents to $39.32. Oil and gas producer Woodside Petroleum (WPL) is flat while the smaller Santos (STO) is down 0.38 pct or 5 cents to $13.08.

The major banks are mixed with National Australia Bank (NAB) down 0.5 pct or 12 cents to $23.75, Commonwealth Bank of Australia (CBA) is 0.28 pct or 14 cents lower to $49.50, ANZ Banking Group (ANZ) is 0.05 pct or 1 cent weaker to $21.07 while Westpac (WBC) is currently flat.

Australia's largest retailers are weaker following a negative consumer confidence report released this morning. Department store owner David Jones (DJS) is down 1.76 pct or 7 cents to $3.91 while its competitor Myer (MYR) is easing by 0.38 pct or 1 cent to $2.61. Discount retailer JB Hi-Fi (JBH) is down 1.39 pct or 23 cents to $16.36 and the country's largest specialty retailer, Harvey Norman (HVN) is 2.02 pct or 5 cents lower to $2.42. HVN has dropped 4.7 pct so far this week.

Following the end of daylight savings in April this year, major Asian markets will be trading between the hours mentioned below until mid October.

The Hong Kong sharemarket trades in two sessions each day and will now be opening for trade between 11.30am (AEST) and 2pm (AEST) and then between 3.30pm (AEST) and 6pm (AEST) in its second session.

Out of Japan, the first session will be between 10am (AEST) and 12pm (AEST), while the second session is between 1.30pm (AEST) and 4pm (AEST).

The Singapore exchange will be open for trade between 11am (AEST) and 2.30pm (AEST) for the first session and then between 4pm (AEST) and 7pm (AEST) in its second session.

The Asian sharemarkets are mixed with Japan's Nikkei 225 index up 0.34 pct or 34.01 pts to 9959.93, South Korea's KOSPI index is 0.38 pct or 8.1 pts stronger 2117.45, China's Shanghai Composite index is flat, and shares in the Philippines are a little lower at lunch.

On the economic front today, the average Australian consumer's confidence has fallen sharply this month by 8.3 pct. This will be discussed in more detail this afternoon.

The best performing stock at lunch is Oroyo Mining (ORO), which is up 50 pct or 0.1 cent to 0.3 cents. ORO is a Western Australian based metals exploration company with interests in gold, copper, nickel and uranium. The company was first listed on the ASX in 1986 and has a market capitalisation (the number of shares on issue by the company multiplied by its current share price) of just over $6 million.

So far today, 818 million shares have been traded worth $1.98 billion. 392 shares are up, 405 are lower and 343 are currently unchanged.

The Australian dollar is weaker and buys US105.9 cents.

Steven Daghlian
Commsec Market Analyst