Australian Stock Market Report – Midday 4/16/2012

AFTERNOON REPORT
(12.30pm AEST)

Australian stocks have started the trading week in the red, dragged down by falls on European and US share markets at the end of last week. Typically, US investors bail out of equities on Friday 13th, the mood last week not helped by ongoing concerns surrounding the Eurozone sovereign debt crisis. Lower commodity prices haven't helped sentiment locally, with the All Ordinaries Index (XAO) down 20.5pts or 0.5pct in early trade to 4383.7.

Those falls in commodity prices have sent the materials sector down by 1pct with shares in index leader BHP Billiton (BHP) lower by 0.6pct to $65.39. Gold miner Newcrest (NCM) has dropped 2.3pct to $28.55.

Shares in Whitehaven Coal (WHC) however are trading higher, up 0.6pct to $6.035 after shareholders approved a $5.1 billion merger with Aston Resources (AZT), including the controversial acquisition of Boardwalk Resources. AZT is trading higher by 0.6pct to $10.29.

The Australian dollar is buying US103.26c, £0.6524 and €79.27c.

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