Australian Stock Market Report - Midday 2/22/2012

LUNCHTIME REPORT
(1pm AEDT)

The Australian share market is trading flat in the early session, after US and European share markets failed to rally overnight, despite Eurozone officials approving the second Greek bailout deal. At lunchtime in the East, the All Ordinaries Index (XAO) is lower by 4.2pts or 0.1pct to 4364.

The financial sector is down 0.2pct while energy stocks are tracking higher, with the energy sector firmer by 1pct. Woodside Petroleum (WPL) has reported a 4.3pct fall in full year profit to US$1.51 billion, due to a one-off cost and gains from assets sales a year earlier. However the oil and gas producer has lifted its production guidance for the next financial year and will reward shareholders with an interim dividend of 55c per share. WPL shares are firmer by 0.9pct to $36.27.

Among other companies reporting today, Queensland based financial services conglomerate Suncorp Group (SUN) has reported a sharp rise in first half profit to $389 million, driven by strong performance at its banking and life insurance divisions. However profit fell at its general insurance unit, due to a large number of claims resulting from a string of natural disasters last year, including the Christmas Day hailstorm in Melbourne. Shareholders will be rewarded with an interim dividend of 20c per share, slightly below expectations. SUN shares are down 2pct to $8.25.

Online jobs website firm SEEK (SEK) has posted a record first half profit of $60.6 million, thanks to growth in Australian employment and its Chinese and education businesses. SEK shares are firmer by 12pct to $6.38 in mid-trade.

Economic data released today shows wage growth remains tame, rising 3.6pct on the year. Excluding bonuses, wages grew by 1pct in seasonally adjusted terms in the December quarter.

The Australian dollar is weaker at US106.35c, £0.6743 and €80.43c.

Juliette Saly, CommSec Market Analyst

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