Australian Stock Market Report - Midday 11/22/2011

MIDDAY REPORT (12pm AEDT)

The local share market has followed global markets into the red, after US and European investors bailed out of equities overnight on ongoing worries about budget deficits. However the selling isn't as bad as was predicted, with the All Ordinaries Index (XAO) down .

Mining stocks are under the most pressure, with the materials sector off 1.4pct. Bluescope Steel (BSL) has announced plans to sell $600 million worth of new shares at a heavily discounted price of 40c. BSL is in a halt at 61c, while Onesteel (OST) has dropped 8.6pct to 85c.

One of the best performers on the market is equipment hire company National Hire (NHR). NHR has risen 16.3pct to $3.50 on a renewed takeover offer from Seven Group Holdings (SVW), valuing the company at $557 million or $3.35 per share. SVW shares are up 3pct to $7.37.

The Australian dollar is buying US98.69c, £0.6307 and €73.12c.

Juliette Saly, CommSec Market Analyst

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