Australian Stock Market Report - Midday 06/03/2011
Shares tumbled by over 2 pct yesterday, marking the biggest daily percentage fall in close to 12 months. It is a much better day for the market today however, with the All Ordinaries index (XAO) down a modest 0.3 pct or 16 pts to 4667.2.
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Commodity prices tumbled overnight in the U.S and the U.K, which is having an impact on the resource sector. BHP Billiton (BHP) is down 0.9 pct or 39 cents to $43.16 while RIO Tinto (RIO) is off by 0.5 pct or 40 cents to $79.70.
Most sectors are pulling back slightly, with the oil and gas producers currently the worst. Woodside Petroleum (WPL) is down 0.98 pct or 45 cents to $45.41 while the smaller Santos (STO) is 1.12 pct or 16 cents lower to $14.10.
The financials are staging a recovery after a tough day on the market on Thursday. Westpac (WBC) is up 0.45 pct or 10 cents to $21.55, National Australia Bank (NAB) is up 0.45 pct or 11 cents to $24.54, ANZ Banking Group (ANZ) is 0.23 pct or 5 cents stronger to $21.48 while Commonwealth Bank of Australia (CBA) is gaining by 0.14 pct or 7 cents to $49.47.
The retailers are mixed, with department store owner David Jones (DJS) up 0.99 pct or 4 cents to $4.09 while its competitor, Myer (MYR) is down 1.44 pct or 4 cents to $2.74.
Australia’s largest telco, Telstra (TLS) is one of the better performing stocks today and is up 1.67 pct or 5 cents to $3.04. One of the big 3 ratings agencies, Fitch has kept its rating on TLS steady today.
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.
Asian sharemarkets are mostly stronger after a tough session yesterday. Japan’s Nikkei 225 index is down 0.31 pct or 29.28 pts to 9525.76, however Hong Kong’s Hang Seng is up 0.14 pct or 33.38 pts to 23287.22, South Korea’s KOSPI index is up 0.05 pct or 1.15 pts to 2115.35 and shares in both the Philippines and Taiwan are stronger.
Yesterday, retail sales figures came in better than expected while the Australian trade balance was lower than expected. Today, a report on the services sector has shown a slight contraction in the industry.
The best performing stock at lunch is Navarre Minerals (NML) which is up 67.86 pct or 9.5 cents to 23.5 cents. NML is a small gold and metals explorer based in Victoria. It has a market capitalisation of $5.8 million and was first listed on the ASX in March this year. Including today’s gains, its share price is up 15 pct from its issue price of 20 cents a share.
So far today, 841 million shares have been traded worth $1.96 billion. 406 shares are up, 476 are lower and 368 are currently unchanged.
The Australian dollar is stronger and buys US106.7 cents.