Australian Stock Market Report - Midday
The Australian share market is trading slightly lower after a mixed session in Wall Street. After the bell in the US session - investors were happy to see a solid result from Microsoft Corporation. The company posted a 52pct gain in fiscal first-quarter profit, on the back of strong sales the newest version of its Windows operating system.
The All Ordinaries index (XAO) off 13.6pts or 0.3pct to 4739.2. All sectors are currently in the red with the biggest losses coming from the utilities sector off 1.4pct.
The banking sector is again in focus after Macquarie Group (MQG) reported its half yearly result this morning. Its numbers were above market expectations even with its Net Profit falling to $403Million down 16pct compared to this time last year. MQG said its full year profit is still in line with previous expectations and its shares are currently up 3.4pct to $35.73.
The ANZ Banking Group (ANZ) is up another 0.7pct or 19cents to $24.92, after the ANZ posted a stronger than expected cash profit yesterday. National Australia Bank (NAB) also up 0.47pct to $25.46. Shares in Westpac (WBC) off 0.87pct to $22.75, ahead of its full year result due out next Wednesday. The Commonwealth Bank of Australia (CBA) off 0.43pct to $49.11. Shares in the ASX Limited (or Australian Securities Exchange) (ASX) at $36.86, off 2.6pct.
The miners very mixed today with weakness in Rio Tinto Limited's (RIO) share price. Commodity prices overnight rallied after a fall in the US dollar. RIO Tinto off 1.4pct to $82.61.
Our largest miner, BHP Billiton Limited (BHP) slightly higher up 0.2pct to $42.09 whilst Australia's largest gold producer, Newcrest Mining (NCM) added another 1.9pct to $39.90 and gold and copper miner OZ Minerals Limited (OZL) trading 1pct higher after a stronger gold price overnight.
The energy sector moved lower in morning trade - even with oil price closing higher overnight. The oil price was supported by a weaker US dollar and an improvement in US jobless claims. The Nymex crude oil contract rose by US70cents to US$82.64 a barrel. Shares in coal stocks are higher and leading stocks Woodside Petroleum (WPL) eased by 0.6pct to $43.86 while Santos Limited (STO) off 0.2pct to $12.67. Oil Search Limited (OSH) off 0.62pct to $6.39.
Qantas Airways Limited (QAN) held its Annual General Meeting today, the company said " its Asia-Pacific routes offers the biggest opportunity in 2010/11 " Qantas said the Australia market is recovering and business its other overseas remains ´´patchy´´. QAN shares down 1.0pct or 0.03c to $2.85.
Retail stocks were sold off ahead of September retail sales number out next week and negative news from TOLL Holdings (TOL). Toll said its Australian delivery business outside the resources sector has been sluggish. CEO Paul Little said "demand has lifted during 2010 but the company expects the rate of improvement to be subdued ahead of Christmas." Harvey Norman (HVN) weaker by 1.8pct. Shares in Myer Holdings Limited (MYR) down 0.26pct to $3.80. Foster´s Group Limited (FGL) off 2.3pct to $5.84 and Coca-Cola Amatil Limited (CCL) off 1.6pct to $12.14.
Yesterday Australia's largest Telco, Telstra (TLS) announced that they are planning to cut close to 1000 jobs mainly from middle management and executive roles to increase the company's efficiency and 'streamline' the business model. Today TLS shares off 0.74pct or 2cents to $2.69.
The Australian dollar has gained some ground on the US dollar overnight but has fallen back a little in early morning trade. 1 Australian dollar will now buy you US97.61c and €70.22c.