Australian Stock Market Report - Midday 3/27/2012

LUNCHTIME REPORT
(12pm AEDT)

Encouraging comments from US Federal Reserve Chairman Ben Bernanke has seen the Australian share market post solid gains in early trade. Chairman Bernanke hinted in a speech to US economists overnight that the Fed remains committed to keeping interest rates in the US low. He also hinted at a third round of economic stimulus, which saw the broader S&P 500 Index in the US hit four year highs during New York trade. Early in the local session, the All Ordinaries Index (XAO) is up 34.1pts or 0.8pct to 4389.3.

Gains are being recorded across the board, with particular strength coming from mining, energy and financial players. Shares in the ANZ (ANZ) have risen 1.5pct to $23.15 in early trade while oil and gas explorer Santos (STO) has risen 0.8pct to $14.34.

Shares in Leighton Holdings (LEI) have been placed in a trading halt, last at $23.75, as the construction company considers potential changes to its financial guidance. Leighton said the findings of the current quarterly review could prompt a revision of its earnings guidance.

Elsewhere, Stockland Group (SGP) shares are down almost 4pct to $3.015 after the property developer trimmed its full year earnings guidance.

The rally in equity markets both locally and offshore has seen the Aussie dollar regain some ground. At 12pm AEDT the Aussie is buying US105.27c, £0.6593 and €78.78c.

Juliette Saly, CommSec Market Analyst

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