Australian Stock Market Report - Midday 3/9/2012

LUNCHTIME REPORT
(12pm AEDT)

Local stocks are tracking higher on the final day of the trading week on growing optimism Greece will receive enough support for its debt swap deal. Private sector creditors are expected to sign off on the agreement by 5pm AEDT. At lunchtime in the East, the All Ordinaries Index (XAO) is up 18.4pts or 0.4pct to 4280.6.

Financial, energy and mining stocks are all solid with Rio Tinto (RIO) shares firmer by 2pct to $63.89.

However Qantas (QAN) is down 3pct in early trade to $1.675 after the airline's talks with Malaysian Air to set up a new premium airline failed. The breakdown in talks is being seen as a major blow for the airline's push into Asia, and could place it at a slight disadvantage to Virgin Australia (VAH) which has a joint venture arrangement with Singapore Air. VAH is trading steady at $.0445.

The Australian dollar is worth US106.19c, £0.6716 and €80.08c.

Juliette Saly, CommSec Market Analyst

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