Australian Stock Market Report – Midday 5/21/13

MID-SESSION REPORT

(11.30am AEST)

Local stocks have come under selling pressure in early trade on Tuesday, despite predictions of a flat session.

Overnight blue chip stocks on Wall Street eased from record highs, but not before the tech heavy NASDAQ Index briefly touched a 12 and a half year high.

Locally, financial players have come under pressure. Commonwealth Bank (CBA) shares which reached a record high yesterday, are down by 1.3 per cent in the early session.

In company news, Transfield Services (TSE) has today reduced its full year profit guidance and announced plans to cut 113 jobs. TSE no expects its FY13 earnings to come in between $62-65 million, down from $85-90 million. TSE shares have fallen by 21.5 per cent in the early session to $1.00.

Former journalist and current head of the Seven Television Network Tim Worner has today been appointed incoming Chief Executive Officer of Seven West Media (SWM). Don Voelte, who used to work in the energy sector, will step down from the top job on July 1 after 12 months as CEO. SWM shares are down 1.2 per cent to $2.33.

Drilling services provider Boart Longyear (BLY) is updating its shareholders at its Annual General Meeting today. BLY has also announced that current CEO and President Richard O'Brien has been appointed an Executive Director of the board. BLY shares are down almost 5 per cent to $0.7475.

On the market so far, a total of 521 million shares have changed hands, worth $1.3 billion. 292 are up, 424 are down and 292 are unchanged.

The Australian dollar has slipped from morning highs of US98.25c to 97.77c ahead of the release of the RBA Board Minutes from the May meeting.

The Nikkei is down 0.2 per cent in early Japanese trade.

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