Australian Stock Market Report - Midday

Strength from mining stocks is managing to keep the Australian share market slightly firmer at lunchtime in the East, although worries about the economic cost of the Queensland floods is also having an impact.

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Firmer metals trade in London overnight is boosting both BHP Billiton (BHP) and Rio Tinto (RIO), with BHP shares firmer by 1.1pct to $45.11 and RIO up 1.3pct to $85.23.

Insurance stocks remain under pressure, with estimates claims from the floods could top $1 billion. Shares in Suncorp-Metway (SUN) have fallen 0.9pct to $8.12 while IAG (IAG) is down 3.1pct to $3.72 and QBE (QBE) is off 0.8pct to $17.99.

Crane hire and operator Boom Logistics (BOL) says it cannot yet assess the impact of the floods on its business. BOL shares are down 1.4pct to $0.36.

The Bank of Queensland (BOQ) is weaker by 4pct to $9.58.

QR National (QRN) has fallen 0.4pct to $2.67.

The Reject Shop (TRS) has requested a trading halt until Friday, with its main distribution centre located in Ipswich which is expected to be flooded when the Brisbane River peaks. TRS last traded at $13.08.

Elsewhere, MySpace has announced plans to lay off 500 workers or around half its workforce, as the company continues to suffer due to the popularity of Facebook. NewsCorp (NWS), which purchased MySpace in 2005, is down 0.8pct to $16.38.