Australian Stock Market Report - Midday 11/11/2011

MIDDAY REPORT (12pm AEDT)

There was a little bit more optimism on global markets overnight after Greece got a new Prime Minister and Italian borrowing costs stabilised. However the local share market has given up early gains to trade flat at lunchtime in the East.

Financial stocks are generally firmer, with the Commonwealth Bank (CBA) up 1pct to $49.29. However Macquarie Group (MQG) is down 1.3pct to $22.93 in early trade.

Fairfax (FXJ) shares are under pressure, after John B Fairfax severed his ties with the media company overnight, selling his 9.7pct stake for $193 million. FXJ is down 7.7pct in early trade to $0.855.

Leighton Holdings (LEI) has held its AGM today, reaffirming profit guidance for the year. LEI is down 0.2pct in early trade to $20.08.

The Australian dollar is buying US101.33c.

Juliette Saly, CommSec Market Analyst

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