Australian Stock Market Report - Midday
Once again the Australian share market is trading flat, as weakness in blue-chip stocks offsets positive earnings results. The All Ordinaries Index (XAO) is down 2.6pts to 4501.3 at lunchtime in the east.
Shares in BHP Billiton (BHP) continue to lose ground, down another 1pct to $38.02 after ratings agency Moody's indicated it would review the credit rating of the world's biggest miner in the wake of its bid for Potash Corp. Rio Tinto (RIO) is also weaker, down 0.5pct to $73.07 in the wake of weaker metals trade in London overnight.
The financial sector is lower by 0.3pct with shares in the Commonwealth Bank (CBA) weaker by 0.5pct to $50.40 and Westpac (WBC) down 0.5pct to $22.94.
Retail stocks are also lower, while Telstra (TLS) is firmer by 1.7pct to $3.01.
Among the companies which have reported earnings today:
Shares in Wesfarmers (WES) are down 1pct to $31.48 after the diversified group's FY net profit fell short of expectations. WES reported a 2.8pct lift in FY10 earnings to $1.57 billion.
AMP Limited (AMP) shares are down 4.3pct to a one year low of $5.09 after the company's 1H underlying profit fell short of expectations. 1H profit rose 17.4pct to $425 million and it has declared an interim dividend of 15c per share, up from 14c last year. AMP has also warned that in the 2H, investment markets are likely to remain challenging.
The ASX (ASX) has announced Australia will get its own VIX - Volatility index - after reporting a FY net profit up 4.6pct to $328 million. The company also says it remains confident in the face of competition from new exchange Chi-X. ASX shares are down 0.5pct at lunchtime to $29.84.
Insurer QBE (QBE) has reported a 39pct drop in 1H profit to US$440 million. Australia's largest insurance company says it was hit by lower investment from cash and fixed income investments. It will pay an interim dividend of 62 cents per share. QBE shares are up 2.8pct to $17.40.
Brambles (BXB) has reported a FY10 profit down 1pct to US$448.8 million. The result still beat consensus but its guidance for FY11 not that strong. BXB shares are up 7pct to $5.67 at lunchtime.
Adelaide Brighton (ABC), a supplier of cement and lime to construction, engineering and resource sectors, has reported a 57pct lift in 1H net profit to $68.8 million. ABC says it's thanks to strong concrete demand. ABC will pay an interim dividend of 7.5 cents per share, its shares are up 2.7pct to $3.40.
Property and equity investment re-evaluations led to an annual net loss for Goodman Group (GMG) of $562.6 million. GMG will pay a final distribution of 1.9c per security after not paying final dividend last year. GMG says after tax operating profit in FY10/11 should rise. GMG shares are down 2.3pct to $0.635.
Healthscope (HSP) has reported its profit rose 37.3pct in FY10 to $99.3 million. HSP will pay a 9c special dividend per share if takeover from private equity group goes ahead. HSP shares are firmer by 1.2pct to $6.11.
The Australian dollar is worth US89.62c at lunchtime in the east.