Australian Stock Market Report – Midday 5-7-13

MIDDAY REPORT

(12pm AEST)

After a flat start, sellers have moved in to the Australian share market at lunch, sending the All Ordinaries Index (XAO) down by almost half a per cent.

Financials are doing most of the damage, ahead of the RBA Interest rate decision at 2.30pm AEST. Money markets are split as to whether or not there will be a rate cut this afternoon, while we at CommSec believe the Reserve Bank will hold fire and keep rates on hold at three per cent.

Mining stocks are faring better, with Australia's largest listed gold producer Newcrest Mining (NCM) firmer by 4.8 per cent.

Coca-Cola Amatil (CCL) has today announced it expects it 1H profit could fall by 8-9 per cent but its Full Year profit will be broadly in line with last year's result. CCL will also pay a 1H dividend of 26.5c per share, including a special dividend of 2.5 cents. CCL shares are down 10.4 per cent in the early session to $12.945.

Surfwear retailer Billabong (BBG) has been placed in a trading halt, last at 45.5c pending an announcement about its latest takeover offer. BBG was offered 60 cents per share in April from former BBG director Paul Naude and his advisory firm Sycamore Partners.

Retailers are mixed ahead of the RBA's decision. Shares in JB Hi-Fi (JBH) are firmer by 2.9 per cent to $17.085 while Myer Limited (MYR) is down 1.4 per cent to $2.93.

The Australian dollar is buying US102.43c.

So far in early trade, 827 million shares have changed hands, worth $1.7 billion. 335 are up, 368 are down and 309 are unchanged.

Japan's NIKKEI Index is up 2.8 per cent in early trade, while the Shanghai Composite is down 0.4 per cent. The NZ 50 Gross is firmer by 20.8 pts or 0.5 per cent.

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