Australian Stock Market Report – Midday 5/28/13

MID-SESSION REPORT

(12.30pm AEST)

The Australian share market is making gains in early trade, following five sessions of losses and a lacklustre offshore lead.

US markets were closed overnight for Memorial Day, while UK markets were closed for a Bank holiday. Other European markets were higher in thin trade.

Financial stocks are making the best gains, with the sector firmer by 0.5 per cent. Shares in Westpac (WBC) are the best of the big four, firmer by 1.2 per cent to $29.58.

Elsewhere in the sector, Queensland based financial services conglomerate Suncorp Group (SUN) has today announced it is targeting 7 per cent annual growth. SUN shares are firmer by 2 per cent to $12.59.

Coal miner New Hope (NHC) has reported a drop in quarterly production as it deals with excess coal stocks and weak market conditions. NHC shares are down 2.7 per cent at lunchtime to $3.68.

Virgin Australia (VAH) is one step closer to acquiring Tiger Airways, after the Foreign Investment Review Board (FIRB). The FIRB has no objections to Virgin's proposed purchase of a 60 per cent stake in Tiger, which has already been given the green light from the Competition and Consumer Commission. VAH shares are steady at lunchtime at 43.5c while Qantas (QAN) is down 0.8 per cent to $1.5475.

Drug maker Pharmaxis (PXS) is down 4.4 per cent at lunchtime to 22 after announcing plans to slash 45 jobs as the company undergoes a major restructure.

The Australian dollar is back above US96c. It is also buying €78.61c and £0.6381.

On the market overall, a total of 739 million shares have changed hands, worth $1.65 billion. 385 are up, 369 are down and 292 are unchanged.

No economic data is scheduled for release today.

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