Australian Stock Market Report - Midday 11/17/2011

MIDDAY REPORT (12pm AEDT)

The Australian share market is trading flat at lunchtime in the East, following another volatile offshore session. US stocks were relatively stable heading into the last hour of trade, before ratings agency Fitch warned of contagion risks to US banks if the European sovereign debt crisis intensifies.

Financial stocks locally are mixed, with the NAB (NAB) the worst out of the big four, down 1pct to $24.37.

Building materials company James Hardie (JHX) is rising sharply, after its 1H net profit beat expectations. The company also reiterated its FY guidance. JHX is firmer by 5.6pct at lunchtime to $6.42.

In the materials sector, shares in Northern Star Resources (NST) are firmer by 16pct to 87c after the company announced it had found a huge reserve of gold at its Paulsens mine.

The Australian dollar is worth US100.52c, £0.6401 and €74.77c.

Juliette Saly, CommSec Market Analyst

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