Australian Stock Market Report

MIDDAY REPORT
(12pm AEDT)

Despite a disappointing start to the week yesterday, the All Ordinaries index (XAO) is up 0.4 pct to 18.3 pts to 4305.9 with most sectors trading higher. The traditionally defensive healthcare sector is one of the worst performing areas of the market with the S&P/ASX 200 Healthcare index down 0.44 pct or 34.6 pts to 7857.1.

Australia's largest gold producer, Newcrest Mining (NCM) released its second quarter production report today (October to December 2011) and said that gold production over the quarter was 3 pct higher than in the previous quarter but 20 pct lower on the prior corresponding period (October to December 2010). Copper production was down over the quarter; however NCM reaffirmed its production guidance for this financial year of between 2.43 million and 2.55 million ounces of gold. Guidance for copper production was also maintained. NCM shares are up 2.08 pct or 67 cents to $32.87.

The mining sector is around 0.5 pct higher with RIO Tinto (RIO) up 1.19 pct or 81 cents to $68.71 while the larger BHP Billiton (BHP) is 0.27 pct or 10 cents higher to $37.34.

The big four banks were mostly lower on Monday but are improving at lunch with Westpac (WBC) the best, up 0.73 pct or 15 cents to $20.61, ANZ Banking Group (ANZ) is 0.53 pct or 11 cents higher to $20.98, Commonwealth Bank (CBA) is 0.34 pct or 17 cents stronger to $49.91 and National Australia Bank (NAB) largely flat.

The retail sector actually kicked off the week mostly higher yesterday and is mixed after a few hours of trade. Department store owner, David Jones (DJS) is 2.07 pct or 5 cents lower to $2.37, Myer (MYR) is 0.95 pct or 2 cents weaker to $2.08 while JB Hi-Fi (JBH) is edging higher by 0.25 pct or 3 cents to $12.03.

Following the start of daylight savings at the start of October, major Asian markets will be trading between the hours mentioned below until April next year (note that over the next month, some of the times might be slightly off due to several countries in the region changing their clocks at differing periods).

The Hong Kong sharemarket trades in two sessions each day and will now open for trade between 1pm (AEDT) and 3.30pm (AEDT) while the second session is between 5.30pm (AEDT) and 7pm (AEDT).

Out of Japan, the first session will be between 11am (AEDT) and 1pm (AEDT) while the second session is between 2.30pm (AEDT) and 5pm (AEDT).

The Singapore exchange will be open for trade between 12pm (AEDT) and 3.30pm (AEDT) for the first session and then between 5pm (AEDT) and 8pm (AEDT) for the second.

Most markets in the region are not trading today due to the Lunar New Year public holiday; however Japan's Nikkei 225 index is up 0.39 pct or 34.58 pts to 8800.48.

So far in trade at lunch, 683 million shares have been traded worth $1.06 billion. 432 shares are up, 307 are lower and 360 are currently unchanged. Activity is very light partly due to the numerous public holidays in the region and the shortened trading week in Australia.

The Australian dollar (AUD) is buying US105.2 cents, €80.8 cents and £67.6 pence.

The AUD is the world's fifth most traded currency behind the U.S dollar, the Euro, Japanese Yen and British Pound. The AUD accounts for around 7 pct of all foreign exchange trades.

Steven Daghlian, CommSec Market Analyst

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