Australian Stock Market Report - Midday

Local stocks are trading in the red today, following a muted lead from Wall Street and a sharp fall in oil and gold prices.

The materials sector is the worst performer, with index leader BHP Billiton (BHP) down 0.6pct to $45.17 while Rio Tinto (RIO), which has sold its 61pct stake in Alcan to investment groups, is lower by 0.5pct to $85.38. Australia’s largest gold producer Newcrest Mining (NCM) has dropped 2.1pct to $39.68 after the price of gold fell to US$1378.80 an ounce in New York trade.

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Among the energy players, shares in Caltex (CTX) have dropped 1.7pct to $14.68 while Oilsearch (OSH) is weaker by 1.6pct to $6.91.

Banking stocks are mixed. The Commonwealth Bank (CBA) is weakest out of the big four, down 0.7pct to $50.10 while the NAB (NAB) remains in the black, up 0.1pct to $23.87.

Insurance stocks have turned positive after being heavily sold off yesterday. Suncorp-Metway (SUN) shares are up 0.8pct to $8.42 despite the insurer being subject to a broker downgrade in the wake of more than 1800 claims arising from the Queensland floods. Shares in IAG (IAG) have risen 0.5pct to $3.84 while QBE Insurance (QBE) is up 0.8pct to $17.90.