Australian Stock Market Report –Midday 4-17-13

MID-SESSION REPORT
(12.30pm AEST)

The Australian market is edging higher by 0.8 per cent after the initial concerns relating to the Boston marathon bomb attacks have largely subsided. The mining and energy sectors are sliding modestly, while all other regions of the market are improving. The psychologically important 5000.0 is being tested (for both the ASX200 and the All Ords).

The world's biggest mining company, BHP Billiton (BHP) has largely maintained its production forecasts this morning in an update to the market. BHP shares are still down around 0.5 per cent. The smaller Rio Tinto (RIO) yesterday acknowledged the significance of its pit-wall slide at one of its best assets in Utah (copper mine). Its shares are slipping for the fifth consecutive day.

Australia's largest telco, Telstra (TLS) is going from strength to strength and is trading close to a 5-year high. TLS is up 1.6 per cent at lunch.

Media giant News Corp (NWS) has announced that 21st Century Fox will be the new name of its media and entertainment business created by the splitting of the company. NWS shares are up 2.9 per cent, taking the gains for the year to 24 per cent.

The price of gold rose overnight however is still down 7.5 per cent this week. The initial slump was partly off the back of comments from European Central Bank President, Mario Draghi late last week. Newcrest Mining (NCM) is up for the first time in five sessions, rising by 0.5 per cent. NCM slumped by more than 5 per cent yesterday and 8 per cent on Monday.

Last night, American markets recovered strongly following Monday's sharp 1.8 per cent tumble. The International Monetary Fund (IMF) forecast 3 per cent growth for the Australian economy this year and 3.3 per cent next year. This was largely in-line with most market estimates however, and hasn't shocked market participants. European markets eased in the vicinity of 0.5 per cent.

At lunch, 760M shares have been traded, worth $1.9B. 452 stocks are higher, 289 are falling and 286 are unchanged.

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