Australian Stock Market Report – Midday 1/29/14

MID-SESSION REPORT
(11.40am AEDT)

The Australian share market is recovering after yesterday posting its biggest one day loss since mid-December, as investors remained concerned about the health of emerging economies.

Early this morning the Turkish Central Bank moved to restore some confidence by increasing its overnight cash rate more than was expected. The country's overnight lending rate increased from 7.75 to 12 per cent, a move which saw the US Dow Jones Futures Index spike and gave some support to our dollar.

At lunchtime in the East, the All Ordinaries Index (XAO) is firmer by 0.4 per cent.

In company news, oil and gas explorer Drillsearch (DLS) has increased its 2014 production guidance by around a million barrels. The company plans to drill around 20 wells in the second half of the financial year. DLS shares are firmer by 6.6 per cent in early trade to $1.525.

Meanwhile investors have also responded well to Atlas Iron's (AGO) update. The mid-tier iron ore miner has lifted its forecast shipments of iron ore and says prices for the commodity remain strong. AGO shares are firmer by 6.8 per cent in the early session to $1.02.

Engineering firm Forge Group (FGE) could be putting itself up for sale, after announcing it expects a full year loss of up to $25 million. FGE shares have been hammered recently due to a number of project writedowns. In early trade FGE is down 6.7 per cent to 84c.

So far on the market, 600 million shares have changed hands, worth $1.3 billion. 460 are up, 250 are down and 242 are unchanged.

The Australian dollar has received a boost and is back above US88c.

The Dow Futures Index is at 15,935 up 59 points or 0.4 per cent.

[Kick off your trading day with our newsletter]