Australian Stock Market Report - Midday
Australian stocks have kicked off today's trading with a rally after the negative start yesterday, as concerns over the Korean skirmish and the Irish bailout package subsided. The Australian market opened 20points higher and at lunch time the market is still up 13points or 0.3pct to 4,686point.
The financial sector is enjoying a rebound up 0.3 pct. Shares in the ANZ Banking Group Ltd (ANZ) the best out of the big four lenders up 1.3pct in early trade to $22.57. Westpac (WBC) off 0.2pct to $21.34, whilst the Commonwealth Bank (CBA) down 5cents or 0.1pct to $48.10 and the National Australia Bank (NAB) off 10cents or 0.43pct to $23.35. Tower Australia limited (TAL) shares up 5.7pct to $2.59, after the company reported a better than expected lift in its annual net profit up 88pct to $87.4 Million to the end of September 2010. The property sector also in the spotlight today, with a strong lift in early trade.
Mining stocks also started strong but the big guns BHP Billiton Limited (BHP) and Rio Tinto Limited (RIO) only slightly higher with the main gains coming from the iron and steel stocks. Mount Gibson Iron Limited (MGX) up 2.56pct to $2.00 and SIMS Metal Management Limited (SGM) up 66cents or 3.66pct to $17.83. Base metals rallied higher in overnight trade. BHP up 13cents or 0.3pct to $43.08 while is RIO firmer by 66cents or 0.8pct to $83.15. Fortescue Metals Group (FMG) has gained 12cents or 1.9pct to $6.58.
Our gold producers are trading slightly higher even with the big sell off in US gold stocks overnight and a fall in the gold price. Newcrest Mining Limited (NCM) up 51cents or1.2pct to $40.18 a share.
In the energy sector higher after oil prices rose on US$2.61 to US$83.86 a barrel in US trade and has continued to rise in Asian trade now at US$84 a barrel. Shares in Woodside Petroleum (WPL) gained 1.01pct to $41.18 and Santos Limited(STO) up by 0.89pct or 11cents to $12.49.
Shares in Pike River Coal (PRC), are still suspended from trade, after yesterday's confirmation of loss of life of all 29 miners that were trapped in its New Zealand coal mine. New Zealand Oil and Gas (NZO), a majority holder of Pike River, is trading on the exchange today, the company issued a statement saying "The Company extends their deepest heartfelt sympathies to the families, friends and colleagues of the men who have lost their lives so tragically at the Pike River Coal mine". New Zealand Oil and Gas will be making a contribution of $500,000 to an appropriate fund to support those families and communities. The associated secured creditors of Pike River Coal have agreed to a stand-still period of 90 days.
Telstra (TLS) continuing is solid run adding another 3.5cents or 1.2pct to $2.81 in early trade.
In economic news, September quarter Capital expenditure data (capex) was released the headline number came in higher than expected at 6.2pct. The main contribution to the increase was, as expected, the mining sector.
The dollar regaining all yesterday's losses and more. 1 Australian dollar will now buy US98.07c and €73.64c.