Australian Stock Market Report - Afternoon 10/31/2011

AFTERNOON REPORT (12pm AEDT)

After a negative start, the local share market is paring losses to hold only slightly lower at lunchtime in the East. Stocks in New York ended modestly higher on Friday night while European share markets ended mixed. At Midday in the East, the All Ordinaries Index (XAO) is down 9.5pts or 0.2pct to 4401.9.

Qantas (QAN) shares are in focus, as the airline prepares to resume flights following the weekend grounding. QAN shares are firmer by 6.5pct to $1.645 in early trade, while Virgin Australia (VBA) is up 5.5pct to $0.38. Qantas plans to return to business as usual over the next 24 hours, after Fair Work Australia (FWA) terminated all industrial action between the airlines and unions early this morning.

Financial and mining stocks are holding the overall market back, with shares in the ANZ (ANZ) off 0.7pct to $21.92 and index leader BHP Billiton (BHP) lower by 0.4pct to $38.52.

Gold miner Newcrest Mining (NCM) however is firmer, up 1pct to $34.56 while energy player Woodside Petroleum (WPL) jas gained 2.3pct to $36.83.

The Australian dollar is mixed against the major currencies and buys US106.79c, £0.6625 and €75.48c.

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