Australian Stock Market Report – Midday 10/22/2012

MIDDAY REPORT
(12pm AEDT)

The Australian share market is modestly lower at lunchtime in the East, following Wall Street's lead. The US Dow Jones Index closed down 0.1pct while technology shares saw the NASDAQ fall by 1pct. At lunchtime in the East, the All Ordinaries Index (XAO) is down 7.8pts or 0.2pct to 4573.1.

Financial stocks are the weakest link, down 1pct with shares in the National Australia Bank (NAB) down 3.1pct to $26.13. The NAB today released its September quarter earnings, with the group amassing $1.4 billion. NAB has also raised it provisions to deal with the impact of an economic downturn to $250 million, a move that will negatively impact its full year earnings.

Shares in grain provider Graincorp Limited (GNC) have been halted from trade at $8.85 following two block trades which went through early this morning. American global food processing company Archer Daniels Midlands has purchased a 10pct stake in the company, at a 33pct premium to yesterday's closing price of $11.75. ADM also says it wants to engage in talks with Graincorp, sparking speculation of a takeover.

The Australian dollar remains well supported, buying US103.67c, €79.36c and £0.6458.

[Kick off your trading day with our newsletter]