Australian Stock Market Report - Midday 21/1/2011
The Australian market is off slightly at the moment with mining stocks the biggest drag on performance due to weaker commodity prices and global weakness overnight. Expectations that China will resort to further tightening of its economy due to strong economic figures yesterday has increased. This comes off the back of solid data out of China yesterday. The All Ordinaries index (XAO) is down 0.8pct or 39.5pts to 4852.5.
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The S&P/ASX 200 Materials index is down 1.85pct or 150pts to 16236.7. Both of Australia's largest miners are weaker by more than 1pct with BHP Billiton (BHP) off 1.99pct or 90cents to $44.29 and RIO Tinto (RIO) is down 1.6pct or $1.37 to $84.23. The price of gold fell 1.7pct and the country's largest producer of the precious metal, Newcrest Mining (NCM) is down by around the same levels off by 1.77pct or 66cents to $36.70.
Australia's second largest oil and gas producer, Woodside Petroleum (WPL) released its fourth quarter production results which showed a fall in production levels however a rise in revenue, thanks in part to a stronger oil price. WPL is down 0.4pct or 17cents to $42.60.
Our largest banks are mostly stronger with ANZ Banking Group (ANZ) leading the gains, up 1.04pct or 24cents to $23.30. Late in trade yesterday, ANZ appointed a new Chief Executive of its China operations with the intention of developing a greater share of business in the world's most populated nation.
International and domestic airline group, Air New Zealand (AIR;nz) increased its stake in Australian budget airline, Virgin Blue (VBA) to 14.9pct overnight. The intention of the increased stake is to reinforce its presence in the Australian market. AIR;nz shares in New Zealand trade is currently flat.
On the economic front, the change in import and export prices for the final quarter of calendar year 2010 will be released today.
The Australian dollar (AUD) has fallen sharply overnight and buys US98.67c.
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