Australian Stock Market Report - Midday 11/18/2011

MIDDAY REPORT (12pm AEDT)

Local stocks are being heavily sold off in early trade, after US and European markets again slid into negative territory overnight on continued concerns about the Eurozone debt crisis. A headline suggesting Italy may not be able to receive bailout funds if needed also exacerbated the selling.

At lunchtime in the East, the All Ordinaries Index (XAO) is weaker by 67pts or 1.5pct to 4257.1.

Selling is right across the board, with shares in the NAB (NAB) down 2.2pct to $23.81, BHP Billiton (BHP) also off 2.2pct and Oilsearch (OSH) off 2.8pct.

One stock moving higher is Virgin Australia (VBA) up 1.3pct to 38c.

The sell-off in global equity markets has seen investors move back to the safe haven of the greenback. At 12pm AEDT the Aussie is buying US99.87c, £0.6347 and €74.25c.

Juliette Saly, CommSec Market Analyst

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