LUNCHTIME REPORT
(12.20pm AEDT)

It has been a subdued start to the trading day, following a lacklustre offshore lead. European shares slipped from eight month highs overnight while US shares only recorded modest gains. At lunchtime in the East, the All Ordinaries Index (XAO) is down 6.4pts or 0.1pct to 4374.8.

Mining stocks are flat despite generally firmer metals trade in London. The Federal Government's controversial Mineral Resources Rent Tax (MRRT) passed the Senate last night, however the passing of the tax has been widely factored into market sentiment for some time. Shares in BHP Billiton (BHP) are up just $0.02 to $35.37 while Fortescue Metals Group (FMG) is trading slightly firmer at $5.99.

Financial stocks are mixed, with shares in the Commonwealth Bank (CBA) down 0.2pct to $48.94 while the ANZ Bank (ANZ) is firmer by 0.3pct to $22.63.

Multi-media service provider TPM Telecom Limited (TPM) has reported a 65pct increase in first half profit as more subscribers took up home phone internet bundles. Shares in TPM have gained 3.6pct to $1.73 in early trade.

Retailer David Jones (DJS) remains in a trading halt, as the company's board meets today to discuss the company's strategy moving forward. David Jones is due to release its first half results to the market tomorrow.

CBA research released today suggests a solid recovery in economy-wide spending is underway. The Commonwealth Bank Business Sales Indicator (BSI) rose by 0.7pct in trend terms in February after gains of 0.9pct in each of the previous three months.
At a sectoral level, just three of the 20 industry sectors contracted in trend terms in February, up from two sectors in January but in line with the December result. None of the eight states and territories recorded weaker sales in trend terms in February although sales were largely unchanged in Western Australia.

The Commonwealth BSI is obtained by tracking the value of credit and debit card transactions processed through Commonwealth Bank merchant facilities. The BSI covers spending broadly across the economy rather than just retail sales, including spending on automobiles, personal services and airlines.

The Australian dollar is buying US106.17c, £0.6682 and €80.2c.