Australian Stock Market Report – Midday 11/14/13

MID-SESSION REPORT
(12.30pm AEDT)

The Australian share market is making a solid comeback at lunchtime in the East, buoyed by expectations incoming US Federal Reserve Chair Janet Yellen will continue Ben Bernanke's path of cheap money until the US Central Bank is satisfied with unemployment and inflation levels.

Yellen posted a copy of the speech she will deliver to the US Senate today which investors took as meaning risk on is back in vogue, sending our market and the Aussie dollar higher.

The gains also followed another record high on the US Dow Jones and S&P 500 Indices overnight.

In company news, building products maker James Hardie (JHX) reached a record high of $12.07 in early trade after doubling its first half profit thanks to strong sales in Europe and the US. At lunchtime JHX is up 14 per cent to $11.90.

The three way bid for Warrnambool Cheese and Butter Factory (WCB) has stepped up a notch, with original suitor Bega Cheese (BGA) upping its bid. BGA will now offer 1.5 shares and $2 cash, valuing WCB around $8.87. Murray Goulbourn yesterday offered $9 per share, up from a Canadian bid of $8. WCB shares are steady at $9.10 at lunchtime while BGA is at $4.58.

No economic news has been released today but the Australian dollar is nudging back towards US94c, buying US93.65.

So far on the market, a total of 838 million shares have changed hands, worth $2 billion. 513 are up, 285 are down and 284 are unchanged.

Japan's share market is up 1.2 per cent in early trade after 3Q GDP rose 0.5 per cent ahead of expectations.

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