Australian Stock Market Report - Midday 2/15/2012

MIDDAY REPORT
(11.45am AEDT)

The Australian share market is trading flat at midday in the East, following a steady finish on US share markets overnight. European stocks slumped in response to ratings downgrades from agency Moody's and while US stocks had been lower in early trade, they rallied into the close to finish relatively unchanged. The All Ordinaries Index (XAO) is down 2.3pts to 4316.6 at lunchtime.

The Commonwealth Bank has reported a record first half profit of $3.62 billion, up 19pct. Cash profit, which is more closely watched by the market, rose 7pct to $3.58 billion, above expectations. The lender says it has no plans to slash staff or send jobs offshore and will pay shareholders an interim dividend of $1.37 per share. CBA shares are firmer by 0.4pct in early trade to $50.17.

Also today, shopping centre owner Westfield (WDC) has reported a 37pct increase in full year profit to $1.532 billion. The group, which manages 118 shopping centres in five countries, saw revenue rise more than 10pct to $4 billion in the year. Westfield shares are up 6pct to $8.87 in early trade.

Domino's Pizza (DMP) has increased first half profit by 23pct to $12.6 million and lifted expectations for earnings growth of 20pct in 2012. The Australian pizza maker says the results were driven by successful product launches across Australia, New Zealand and Europe, while growth of the company's digital business also helped. Domino´s will pay shareholders an interim, fully-franked, dividend of 13 cents per share, up 25pct on the dividend paid in the corresponding period last year. Domino's shares re higher by 7pct in early trade to $7.75.

Economic data released today shows consumer sentiment rose 4.2pct in February, thanks to an improved outlook in Europe and delayed reaction to two rate cuts. The index is now at a reading of 101.1pts, about 5pct lower than levels from last year and 13pct lower than 2010's February reading.

The Australian dollar is buying US106.98c, £0.6816 and €81.47c.

Juliette Saly, CommSec Market Analyst

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