Australian Stock Market Report – Midday 10/12/2012

LUNCHTIME REPORT
(12.15pm AEDT)

Local stocks are trading modestly higher at lunchtime in the East, shrugging off a lacklustre finish on Wall Street. European markets were well supported thanks to solid moves from retail stocks; however US markets closed largely flat. At lunchtime in the East, the All Ordinaries Index (XAO) is up 7.6pts or 0.2pct to 4512.8.

Financial stocks are holding up relatively well, with shares in the ANZ Bank (ANZ) the best out of the big four, up 0.6pct to $25.75.

Mining players are also making a comeback, with generally firm movement on the commodities front overnight. Shares in index leader BHP Billiton (BHP) are firmer by 0.8pct to $33.49 while Rio Tinto (RIO) is up 2pct to $56.34. Iron ore miner Fortescue Metals Group (FMG) is firmer by 1.6pct to $3.81 and has risen 27pct since being placed in a trading halt on the 17th September at $2.99.

Elsewhere, shares in surf-wear retailer Billabong (BBG) have today fallen to an all-time low of 82c (intra-day) after private equity firm TPG ended its takeover talks with the company. Billabong, whose share price was hovering above $13 before the global financial crisis, is currently down 17pct to 83.5c.

The Australian dollar is holding up quite well following a volatile week which saw it drop to three month lows against the greenback. At lunchtime in the East, the AUD is worth US102.65c, £0.6399 and €79.36c.

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