Australian Stock Market Report – Midday 1/7/2013

Midday Market Report
(12pm AEDT)

Today the Australian share market opened higher with the All Ordinaries Index (XAO) adding 24 points. The Aussie market received a boost from the better than expected non-farm payrolls, Job report, in the states on Friday. As the start of trade the best performing sectors were Industrials, Banks & Energy. In the mining sector the small & medium size miners did better than large players and the media sector was once again listing small gains.

By lunchtime The All Ordinaries Index (XAO) had given back early gains and was up 7.5 points or 0.17% to 4,751.

The recent lift in the spot iron ore price has created a lot more activity in the small to medium market capitalisation mining stocks, by lunch the S&P/ASX 200 Materials index was off 1.13% largely helped by these stocks. The China Import (Fines 62% FE) iron ore price lifted another US$3.50 to US$153.30 a dry tonne on Friday.

Today Atlas Iron Limited (AGO) lifted by 2.6% to $1.85 after informing the market that it expects to see first output of ore from its Abydos Mine in June this year. Gindalbie Metals Ltd (GBG) was up another 9.6% and Grange Resources Limited (GRR) also higher up 2.67%. The heavy weight BHP Billiton Limited (BHP) gave back 0.62% to $37.89 while Rio Tinto (RIO) fell by 1.2% to $68.40.

Also in the material sector, Lynas Corporation Limited (LYC) gained 8.4% to $0.67.75c after announcing it expects to commence output of its rare-earth products from its Malaysian refinery within weeks. After its Malaysian mine has been hit with legal and social issues over the last few months. Late in 2012 Lynas managed to secure a temporary operating license within the country. Lynas also said it would ramp up of production over the next three months. Construction materials firm Boral Limited (BLD) added another 0.23% and Orica Limited (ORI) off 0.5%

The gold price continued to move higher in Asian trade after last Friday's falls. US dollar gold price added another US$11 an ounce in electronic trade out of Asia to US$1,660 an ounce. Even with the morning lift in the price it is still off Thursday's highs. Newcrest Mining Limited (NCM) gave back more gains, off 1.3% to $22.54 with Beadell Resources Limited (BDR) off 4.4% and Regis Resources Limited (RRL) off 1.17% with St Barbara Limited (SBM) off 1.2%.

Today the property stocks and big name banking stocks were mixed with the S&P/ASX 200 Financials sector up 0.15%. Westpac Banking Group (WBC) added on Friday's gains up 0.57% to $26.40. Commonwealth Bank of Australia's (CBA) continued to give back ground from last week's record high now at $62.91. QBE Insurance Group Limited (QBE) one of the best performers in the insurance space this morning up 1.73% while Suncorp Group Limited (SUN) fell over 0.7% to $10.39.

The S&P/ASX 200 Industrial sector rose 0.24% helped by mining service provider UGL Limited (UGL) up 1.6% and Leighton Holdings Limited (LEI) up 0.7%.

The S&P/ASX 200 Consumer discretionary sector added 0.3% boosted by media stocks. Prime Media Group Limited up another 9.4%, and Ten Network Holdings Limited (TEN) up 3.45% while REA Group Ltd (REA) fell another 0.8% to $18.08.

Australia's biggest telecommunications company, Telstra (TLS) was flat at $4.47.5c

The Aussie dollar fell back from its early morning run at 12pm AEDT the Aussie dollar is buying US104.79c but still stronger against the Euro at €80.28.

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