Australian Stock Market Report – Midday 12/6/2012

MID-SESSION REPORT
(1pm AEDT)

Despite positive moves from blue chip stocks on Wall Street overnight, the Australian share market is trading in the red at lunchtime in the East. The All Ordinaries Index (XAO) is down 3.2pts or 0.1pct to 4524pts.

A positive read on the economic front today, with 13,900 jobs created in the Australian economy in November. This was above expectations of jobs growth of 10,000 and has seen the unemployment rate fall to 5.2pct.

The embattled Ten Network (TEN) is holding its Annual General Meeting (AGM) today. The company, which has announced a $230 million capital raising, has also flagged a further $35 million of cost cutting measures as it attempts to reverse its fortunes. Directors will also suffer a 10pct pay cut in FY 2013. Major shareholder Gina Rinehart has been applauded as she turned up late to the AGM, after being stuck in Sydney traffic. Ms Rinehart reportedly has a poor track record of turning up personally to AGMs. Ten´s annual report showed Mrs Rinehart, who holds 10pct of TEN stock, attended eight of the company´s 14 board meetings during fiscal 2012. The billionaire sent alternates to the other six meetings. TEN shares remain in a trading halt at 32.5c as the company attempts to tap the market for the capital raising.

Financial shares remain mixed with shares in the Commonwealth Bank (CBA) dn 0.7pct to $60.63 and the National Australia Bank (NAB) down 0.4pct to $24.41.

The Australian dollar is buying US104.73c, £0.6508 and €80.24c.

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