Australian Stock Market Report – Midday 11/22/13

MID-SESSION REPORT
(12.20pm AEDT)

After four straight days of weakness, the Australian sharemarket is surging higher, with the All Ordinaries Index (XAO) up by 0.9 per cent. All sectors are in the black with the energy stocks the standouts. US stocks closed above 16,000 pts for the first time on record last night - American shares have more than doubled in the past five years.

Department store owner, David Jones (DJS) is holding its Annual General Meeting (AGM) today and is 3.1 per cent higher, taking the gains for the year to 26 per cent. DJS Chairman has apologised to shareholders about two board members buying shares a few days before it released upbeat sales figures. Chief Executive Paul Zahra said that DJS has never been as prepared for a Christmas trade period.

A few days ago Myer (MYR) said it's cautiously optimistic regarding the future and is quite well placed to take advantage of improving consumer confidence. There is currently a global search on to replace Bernie Brooks who steps down next August. MYR shares are up by 33 per cent this calendar year.

The mining sector (which is down by 1.1 per cent this week), is one of the better performers at lunch. Iron ore miner, Fortescue Metals (FMG) is up 0.96 per cent, Rio Tinto (RIO) is 0.74 per cent firmer and the larger BHP Billiton (BHP) is up 0.56 per cent.

The major banks are in the red for the third straight week, however are improving for the first time in five sessions. Westpac (WBC) is 1.55 per cent firmer; National Australia Bank (NAB) is up 0.95 per cent, while both Commonwealth Bank (CBA) and ANZ Banking Group (ANZ) are up around 0.75 per cent.

Electronics retailer Dick Smith is expected to list on the ASX on Wednesday 4th December. It is expected to be worth around $520 million (market cap) after being sold for just $20 million by Woolworths to a private equity firm in September 2012.

At the close, 726 million shares changed hands, worth $1.67 billion. 521 stocks finished higher, 267 ended in the red and 281 were unchanged.

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