Australian Stock Market Report – Midday 11/28/13

MID-SESSION REPORT
(12pm AEDT)

Local stocks are trading higher at lunchtime in the East, following yet another record high on Wall Street overnight. The US Dow Jones Index rose by 0.2 per cent to a new record, while the NASDAQ closed at a fresh 13 year high.

Financial stocks are showing strength, with the sector firmer by 0.5 per cent while Rio Tinto (RIO) is also tracking higher, up 0.9 per cent to $64.90 in early trade.

The three way deal for Warrnambool Cheese and Butter Factory (WCB) has entered into a new direction, with Murray Goulburn upping its bid for the company to $9.50 per share. That values WCB at $531.7 million and trumps the bid from Canada's Saputo at $9.20 as well as a combined cash and shares offer from Bega Cheese (BGA). WCB shares are firmer by 1.6 per cent to $9.40 in early trade while BGA is up 1.7 per cent to $4.73.

Meanwhile engineering service provider Forge (FGE) has fallen 85.2 per cent to 62c after coming out of a four week trading halt and flagging heavy financial losses and write-downs.

Jobs website Seek Limited (SEK) has forecast a stronger than expected earnings result at its AGM in Melbourne, sending its shares up 5.7 per cent to $13.11.

Australian firms boosted investment in the third quarter, with CAPEX (business capital expenditure) rising 3.6 per cent in the quarter versus estimates of a fall of 1.2 per cent.

The stronger than expected CAPEX data has seen the Aussie dollar move from levels of US90.8c to US91.1c.

So far on the market, a total of 703 million shares have changed hand, worth $1.4 billion. 466 are up, 282 are down and 277 are unchanged.

Japan's NIKKEI Index is recording solid gains in the early session, firmer by 1.3 per cent. South Korea's KOSPI Index is up 0.8 per cent as is the Shanghai Composite.

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