Australian Stock Market Report – Midday 4-9-13

MID-SESSION REPORT
(12pm AEST)

The Australian market is having its best day in close to a month at lunch, with the All Ordinaries Index (XAO) up 1.1 per cent. This is a refreshing change considering that major sectors have fallen for four consecutive weeks.

At 11.41am (AEST), the latest Chinese inflation data didn't surprise the market and remains subdued. The Consumer Price Index (CPI) is at a lower than expected 2.1 per cent for the past year (market was anticipating 2.5 per cent inflation). This would make Chinese officials more comfortable to stimulate the economy if necessary.

At 11.30am (AEST) a rise in business confidence in March was announced however conditions have worsened. The monthly NAB business confidence measure rose to 2. A reading above 0.0 indicates optimism. It is compiled by conducting a survey of around 350 Australian businesses.

The Ten Network (TEN) announced a $243.3M loss for the six months to February. Revenue was down close to 22 per cent while TV revenue came in at $301.7M. The result was a little higher than most expectations however, which is why its shares are up 5.1 per cent.

Most of the major miner stocks are up by at least 1 per cent, including BHP Billiton (BHP), Rio Tinto (RIO) and iron ore miner Fortescue Metals (FMG). One of the underperformers however is Sundance Resources (SDL), which is down 44 per cent today. It is trading for the first time since 19 March. Last night, SDL confirmed the termination of the $1.4B takeover bid from Chinese firm, Sichuan Hanlong.

Last night, concerns relating to Portugal pulled the Portuguese market 1 per cent lower. However, the major European and American markets still ended higher. The earnings season kicked off in the United States for the previous quarter. Aluminium company, Alcoa announced higher profit, however the outlook isn't upbeat for the second quarter.

At lunch, around 823M shares have been trade, worth $1.75B. 463 stocks are higher, 302 are in the red while 316 are unchanged.

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