Australian Stock Market Report - Midday
Trading volumes are very light on the local market after the US and European markets closed mixed overnight. The London stock market and commodity market, The London Metals Exchange, were closed for the Boxing Day holiday but will reopen for trade tonight. The All Ordinaries Index (XAO) is currently off 8 points to 4,860.
The miners have started off lower even with Copper prices rallied higher in US trade and gold added around US$25 an ounce overnight. The materials index is being pushed lower by BHP Billiton (BHP) off 1.3pct to $45.40 while Rio Tinto (RIO) is off 1.2pct to $85.33 while Fortescue Metals Group Limited (FMG) is flat at $6.73.
Gold stocks are travelling higher, Australia’s largest gold miner Newcrest Mining Limited (NCM) up 1.66pct to $40.48. Newcrest has also updating the market this morning about the recovery of its workers at Newcrest’s Indonesian mine, the Kencana underground mine at Gosowong, after a mudstone slide over the weekend, all miners are now safe.
Energy stocks were generally flat, despite the price of crude oil rising again overnight. Shares in Santos (STO) dropped 0.98pct to $13.13 while Caltex (CTX) only slightly lower off 0.14pct to $14.25. Shares in Woodside Petroleum (WPL) are off 0.4pct to $42.73 and White Haven Coal (WHC) off another 1.4pct still falling from its profit downgrade before the Christmas break.
Financial stocks are having a very quiet day. Shares in Westpac Banking Corporation (WBC) up slightly to $22.69 while the Commonwealth Bank of Australia (CBA) is off by 0.02pct to $51.10 and the National Australia Bank (NAB) down 7cents to $24.03..
Australia’s fifth largest life insurance provider Tower Australia Limited’s (TAL) directors have recommended shareholders accept the $1.2Billion takeover offer from Dai-ichi Life Insurance Company´s. The Japanese base Dai-ichi Life has put in an offer to buy the remaining 71.04 pct of Tower shares that it did not already own. TAL shares have rallied over 41pct on this news this morning to $3.87.
Airline stocks holding steady today. Qantas Airways Limited (QAN) after falling 1pct on Friday has regained ground in early morning trade now at $2.53 and Shares in Virgin Blue Australia (VBA) at $0.435
Telstra Corporation Limited (TLS) shares flat at $2.77.
And the Australian dollar is steady at US$1.0102 and €0.7703c.
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