Australian Stock Market Report - Midday 3/13/2012

LUNCHTIME REPORT
(12:15pm AEDT)

The local share market is posting solid gains in early trade, despite a subdued night on global share markets after China posted its largest trade deficit in more than two decades. At lunchtime in the East, the All Ordinaries Index (XAO) is up 40.8pts or 1pct to 4329.

Financial and mining stocks are leading the gains, with shares in the National Australia Bank (NAB) firmer by ..pct to $.. and BHP Billiton (BHP) up 1.4pct to $35.21.

Shares in Tasmanian forestry company Gunns (GNS) have been suspended from trade at the company's request while it negotiates a capital raising. Gunns shares were placed in a two day trading halt on Friday after the Singapore-based Richard Chandler Corporation decided against investing $150 million in the company. The investment was to have been part of a proposed $280 million capital raising. Gunns shares last traded at 16c.

Economic data released today shows the number of people approved for home loans in Australia fell 1.2pct in January from December.

The Australian dollar is buying US105.29c, €79.99c and £0.6732.

Juliette Saly, CommSec Market Analyst

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