Australian Stock Market Report - Midday 2/23/2012

LUNCHTIME REPORT
(12pm AEDT)

The Australian share market is trading lower at lunchtime in the East, following an unconvincing lead from offshore markets and due to a lack of major economic data to guide investor sentiment. The All Ordinaries Index (XAO) is down 19.2pts or 0.4pct to 4352.9.

Financial and mining stocks are doing the most damage, with shares in Macquarie Group (MQG) down 2.3pct to $26.67 and Rio Tinto (RIO) lower by 1.6pct to $67.41.

Among the companies reporting today, Australia's second biggest carrier, Virgin Australia Holdings (VAH) has more than doubled its first half profit to $51.8 million. The airline benefited from strike action at rival Qantas Airways (QAN) and the grounding of competitor Tiger Airways. No interim dividend was declared, as previously flagged. VAH shares are up 6.9pct to 39c in early trade.

Meanwhile diversified media company Fairfax Media (FXJ) has seen its first half profit tumble 44pct due to tough advertising conditions. Shares in FXJ are down 0.6pct in early trade to $0.82. Shareholders will receive an interim dividend of $0.02 per share.

Insurer IAG (IAG) is up 8pct in early trade to $3.13 after its first half profit came in higher than expected. Profit was down 10.6pct to $396 million, following a string of natural disasters.

The Australian dollar is buying US106.26, £0.6785 and €80.24c.

Juliette Saly, CommSec Market Analyst

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