Australian Stock Market Report – Midday 4-4-13

MID-SESSION REPORT
(12pm AEDT)

As expected, the Australian market is losing ground following weakness from global equities overnight. The All Ordinaries Index (XAO) is down 0.6 per cent to 4937.4 at lunch. With only a day of trade remaining this shortened trading week, local share have slipped by around 0.9 per cent over the past four sessions.

Overnight, global markets pulled back largely due the creation of fewer private sector jobs than expected. Shares in North American slipped from record highs while European equities dropped from two-week highs.

Media group, Fairfax (FXJ) updated the market on its plans for restructure in a four page release to the public. FXJ will have five business divisions and will continue its shift from print media to the digital space. Its Australian Publishing Media unit includes Sydney Morning Herald, The Age and The Financial Review. FXJ shares are down 2.4 per cent, however are still up 18.6 per cent since the start of 2013.

Surfwear retailer, Billabong (BBG) has asked to have its shares indefinitely suspended from official quotation this morning. The Queensland based retailer has been in negotiations with two parties wanting to take over the company. BBG hasn't traded since last Thursday and this has been its fourth straight year of losses in Australia. BBG is down 12 per cent in 2013.

The mining and energy sectors continue to be the biggest drags, with the likes of BHP Billiton (BHP), Rio Tinto (RIO) and Newcrest Mining (NCM) falling between 1 and 3 per cent. BHP is at its lowest level since September 2012 while RIO is at its worst level since October. NCM is trading at prices not seen since October 2008.

On the economic front, both retail spending and building approval reports have exceeded market expectations. The number of building approvals granted to developer. The Australian dollar has jumped by US104.8 cents.

At lunch, 781M shares have been trading worth $1.6B. 186 shares are higher, 605 are in the red while 320 are currently steady.

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