Australian Stock Market Report - Midday
Local stocks have started the trading week in the red, as investors look backwards to falls experienced on Friday night in the US and Europe. Despite the futures market indicating a strong start for Wall Street tonight and positive momentum on the Japanese share market, our market continues to fall at lunchtime in the East.
Financial stocks started the day's trade on a generally healthy note but are currently all trading lower. Shares in the NAB (NAB) are worst out of the big four, down 0.6pct to $23.10. The lender today issued a statement that its systems are now at full capacity, following an incident late last week which left some customers unable to access their deposits.
Elsewhere in the sector, AMP Limited (AMP) has begun formal proceedings in its attempt to take over wealth manager AXA SA (AXA). The two companies have signed documents which will see AMP takeover 100pct of AXA, before divesting its Asian interests to AXA's parent company, AXA SA of France. The deal is still subject to regulatory and shareholder approval. AMP shares are down 0.8pct at lunchtime to $5.07 while AXA is up 0.2pct to $6.21.
Mining stocks have slumped in response to weak metals trade in London on Friday night. Shares in BHP Billiton (BHP) are down 1pct to $42.76 while Rio Tinto (RIO) has also shed 1pct, trading at $83.16.
Among the energy players, Woodside Petroleum (WPL) and Santos (STO) are well supported, however Oilsearch (OSH) and Caltex (CTX) are trading lower.
Telstra (TLS) shares are down 0.7pct to $2.83.
The Australian dollar has lost ground against all the major currencies and is worth US96.07c, £0.6164 and €72.74c.