Australian Stock Market Report - Midday
The Australian share market is lower in morning trade, after a negative night on global markets and falls in commodity prices. The All Ordinaries Index (XAO) is down 0.86pts or 38points to 4,470 at lunchtime.
The only sector making any headway this morning is the consumer staples sector up 0.36pct. Shares in Wesfarmers (WES) fell away yesterday after the group's full year net profit missed the mark, but today as investors were looking for areas of stability and safety in the market Wesfarmers share are moving higher. WES shares up 0.94pct to $32.25. And takeover target AWB Limited (AWB) up 2.4pct to $1.48.
Queensland based surf and leisure wear retailer, Billabong International Limited (BBG), released full year results today. Billabong delivered a net profit after tax of $146 Million broadly in line with the Commonwealth Bank's (CBA) forecast (CBA expected $147Million and market consensus was $148Million.) However the guidance for next year's growth was below expectations. Billabong expects regionally improvements in sales from North America and Europe but tougher conditions here in Australia to continue. Billabong shares down 9.88pct to $8.03.
In the resource sector shares in BHP Billiton (BHP) continued to fall, down another 1.23pct to $37.83 after yesterday's news ratings agency Moody's would review the credit rating of the world's biggest miner in the wake of its bid for the Canadian based Potash Corp and weaker commodity prices. Rio Tinto (RIO) also weaker, down 2.02pct to $71.70 a share, and steel & nickel stocks also lower in early trade.
The financial sector eased by 0.8pct, shares in AMP Limited (AMP) off 3.14pct to $4.93. AXA Asia Pacific (AXA) shares were down 1.1pct to $5.37 and The National Australia Bank (NAB) off 2.04pct to $23.91. Shares in Westpac (WBC) gave back 1.5pct to $22.60 and the Commonwealth Bank (CBA) down 1.1pct to $49.80. Insurer QBE (QBE) yesterday reported a 39pct drop in half year profit to US$440 million. Today QBE shares have moved into the red in the last hour now up 0.18pct to $17.13.
ANZ Banking Group (ANZ) today release is banking update for the nine months till the end of June 2010. The bank said "business momentum continues to grow" and said that underlying profit grew by 37pct to $1.3 Billion in line with expectations and it bad and doubtful debt fell more than expected over the period. ANZ's profit was up driven by modest growth in business earnings but said changes in Australian dollar exchange rate movements did impact the result. ANZ shares up 1.4pct to $22.72.
The energy sector was the star performers yesterday but after the fall in the US oil prices and pressure on oil rig stocks in the US overnight the sector is down by nearly 1pct in morning trade. Woodside Petroleum (WPL) off 0.2pct to $43.35 while Santos (STO) is off 0.91pct to $14.16 and Oilsearch (OSH) shares off1.2pct.
Among the other companies which have reported earnings today:
Spotless Group Limited (SPT) is an integrated services firm issued its annual results today. The group reported net profit after tax up 0.7% to $43 Million and sales revenue was up 6.9 pct, at
$2.38 billion, Spotless management said "it was a good result in a tough environment. Spotless Group shares off 1.9pct to $2.06.
Media and investment firm, Consolidated Media Holdings Limited (CMJ, formerly PBL) also reported annual results today. CMJ has reported underlying full year net profit after tax growth of 27% to $89.5 million, above CBA's expectations, and CMJ management reconfirmed it is still on the hunt for potential acquisitions. CMJ shares higher listing one of the standout gains today up 2.22pct to $3.22.
The Australian dollar is worth US89.16c and €69.60c at lunchtime.