Australian Stock Market Report – Midday 11/7/13

MIDDAY REPORT
(12.30pm AEDT)

The Australian share market is modestly weaker at lunchtime in the East, despite US blue chip stocks recording solid performances overnight. The US Dow Jones Index closed at record highs, although weaker than expected earnings from electric car maker Tesla weighed on the NASDAQ.

Locally, the National Australia Bank (NAB), the ANZ (ANZ) and the Bank of Queensland (BOQ) are all trading without rights to their dividends, taking several points off the overall market. NAB shares are down 3.5 per cent, while the ANZ is weaker by 3.7 per cent and BOQ is weaker by 1.7 per cent to $11.95. NAB is paying out a dividend of 97c, the ANZ a dividend of 91c and BOQ will pay 30c fully franked per share.

Elsewhere, diversified mining services company Ausdrill (ASL) has fallen 28 per cent to 99c after issuing a profit warning. The company on Thursday said it now expects to report a net profit after tax of between $35 million and $45 million for the financial year to June 30, 2014, due to weaker-than-expected first quarter results and soft prevailing market conditions.

Fairfax Media (FXJ) has seen its share price drop 1.7 per cent to 56.5c after telling shareholders at its AGM advertising markets remain weak. The media company is expecting FY14 costs of around $1.6 billion.

Social media network Twitter ($TWTR) will debut on the New York Stock Exchange tonight with a debut price of US$26 / share, above expectations. The company will have a market capitalisation of US$18.3 billion when it floats.

In economic news, only 1,100 jobs were created in the Australian economy in October. The unemployment rate has crept up to 5.7 per cent.

The Aussie dollar has fallen on the employment numbers. It was at US95.3c but is now trading at US94.73c.

[Kick off your trading day with our newsletter]