Australian Stock Market Report – Midday 4-29-13

MID-SESSION REPORT
(12.30pm AEST)

The local market is continuing on its strong run, with the All Ordinaries Index (XAO) up by 0.5 per cent. This follows on from the best weekly performance for Australian shares since December 2011.

Mining and energy stocks are the biggest drags on trade while all other sectors are higher; which is helping keep our market modestly positive. BHP Billiton (BHP) is down 0.3 per cent while the smaller Rio Tinto (RIO) is 0.72 per cent lower.

The financials are contributing most to the gains, with all majors in the black. Westpac (WBC) is up 1.32 per cent while National Australia Bank (NAB) is 1.26 per cent stronger to $33.04.

Global markets finished mixed on Friday, with American equities edging higher, while European shares lost a little ground. Friday's losses aside however, the major European markets of Germany and France jumped by around 4 per cent; the best weekly performance since November 2012.

No major economic news is scheduled for release locally today; however the financial landscape will heat up tomorrow. On Tuesday, monthly private sector credit statistics will be issued, effectively telling markets how many loans are outstanding in the Australian economy. Wednesday will be the busiest day for local economic news, with the issue of the most comprehensive reading of home prices out in addition to new home sales and an update on the manufacturing sector.

In company news over the next five days, ANZ Banking Group (ANZ) and Westpac (WBC) will both be delivering half yearly profit results (on Tuesday and Friday respectively). APN News and Media, Alumina and IRESS are holding shareholder meetings this week.

In the region, two readings on the health of China's manufacturing industry will be out on Wednesday and Thursday. Slight expansion is still expected in China; our biggest trading partner. A number of public holidays in the region are likely to keep investors a little quieter than usual over the next five days however. Chinese markets will be closed today through to Wednesday. Japanese markets are closed today and on Friday while most major Asian sharemarkets will shut their doors for Labour Day/May day this Wednesday.

At lunch, 580.7M shares have exchanged hands, worth just $1.3B. 405 stocks are improving, 345 are lower while 311 are unchanged.

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