MIDDAY REPORT
(12.15pm AEDT)

The Australian share market has kick-started the trading week on a strong note, thanks to positive offshore momentum. The People's Bank of China announced on Saturday that it would cut the reserve requirement ratio (RRR) for banks by 50 basis points, effective from February 24. The move is being seen as a good sign across Asian markets as it frees up capital and boosts liquidity. There are also hopes Eurozone Finance Ministers will agree on the Greek bailout deal later this evening. At lunchtime in the East, the All Ordinaries Index (XAO) is up 45.2pts or 1.1pct to 4318.5.

Financial, energy and mining players all look strong, however the Commonwealth Bank (CBA) is lower by 1.9pct to $48.73 as it pays out a dividend to shareholders. Shares in index leader BHP Billiton (BHP) are up 1.8pct to $35.84.

Among the companies reporting today, property developer Lend Lease Group (LLC) has announced a 3.8pct fall in first half profit to $217.8 million. The result is slightly above expectations, however Lend Lease has also issued a cautious outlook for the remainder of the financial year. Shareholders will receive a lower than expected interim dividend of 16 cents per share, down 20pct on the previous corresponding period. LLC is trading slightly higher at $7.30 per share.

Bendigo and Adelaide Bank (BEN) has reported its first half profit fell sharply, due to the write-down of its margin lending business. However the bank's more closely watched cash profit edged up 0.3pct , in line with expectations and there were no surprises in the already flagged result. BEN will pay an interim dividend of 30 cents per share to its investors, in line with expectations. Shares in BEN are up 1.5pct to $8.14 in early trade.

Telstra (TLS) is down 3.5pct or 12c to $3.29 as its pays out a 14c dividend to shareholders.

The Australian dollar is slightly weaker at lunchtime in the East, buying US107.89c, £0.6802 and €81.74c.

Juliette Saly, CommSec Market Analyst

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