Australian Stock Market Report - Midday 21/02/2011
The Australian sharemarket is pulling back for the first time in three sessions with the All Ordinaries index (XAO) almost wiping out all of last week's gains. The XAO is 0.8 pct or 40.8 pts lower at 4985.3, dipping back under the 5000 pt mark for the first time in five sessions.
The miners are currently the biggest losers, with the S&P/ASX 200 Materials index 1.25 pct or 180.8 pts lower to 14236.5. The world's largest miner, BHP Billiton (BHP), is 1.91 pct or 89 cents weaker to $45.67 while the smaller, RIO Tinto (RIO), is 1.67 pct or $1.46 lower at $86.15.
Our big four banks are all falling between 0.5 pct and 1 pct at lunch.
It is week three of the reporting period and it is considered to be the busiest of the season with dozens of companies releasing their results over the next five session. Australia's second largest oil producer, Woodside Petroleum (WPL), is currently flat after posting a $1.58 billion net profit for the full year.
Oil refiner, Caltex (CTX) reported a full year profit of $302 million, which is better than what the market was expecting. CTX shares are currently up 5.03 pct or 72 cents to $15.04. CTX also announced that a 30 cent a share dividend will be paid to clients, matching last September's 30 cent payout for the interim dividend.
Australia's largest travel agent, Flight Centre (FLT) is down 0.64 pct or 15 cents to $23.27 at lunch despite posting a $70.5 million net profit for the six months to December 2010. This is close to $20 million or 38 pct higher than the corresponding period in the previous year. FLT posted its results prior to the open this morning. FLT's global cash and investment portfolio totalled $796 million at December 31, 2010 which is $70 million higher than the previous year-end. FLT's total borrowings were $166 million.
FLT was founded by Graham Turner back in 1981. He is currently the company's managing director and today he said that "five years ago, we had 14 travel brands and about 1500 businesses in eight countries. Today we have 36 brands and more than 2200 businesses in 11 countries..."
Australia's largest steel producer, Bluescope Steel (BSL), is 4.22 pct or 10 cents lower to $2.27 after posting its first half (July to December 2010) result prior to market open today. BLS reported a $55 million net loss after tax (NLAT). BSL has said that trading conditions remain tough, however BSL's CEO and Managing Director, Mr Paul O'Malley has said that the results are in line with the company's guidance at their Annual General Meeting (AGM).
Australia's largest telecommunications company, Telstra (TLS) went ex-dividend today and is 17 cents or 5.41 pct weaker at $2.80. TLS will pay out a 14 cent dividend on the 25th March 2011. TLS's dividend has remained at 14 cents a share since 2006.
It will be a very quiet day on the economic front today, with no major data expected to be released.
Some Asian markets have already started trading today with Japan's NIKKEI 225 down 0.28 pct or 30.18 pts to 10812.62 , China's Shanghai Composite index trading slightly stronger and and Hong Kong's Hang Seng index yet to open for trade.
The Australian dollar (AUD) is a little weaker and buys US101.2 cents.