Australian Stock Market Report – Midday 5/28/2012

LUNCHTIME REPORT
(12.45pm AEST)

The Australian share market is moving to recover some lost ground on the first day of the last trading week of May. The catchphrase "Sell in May and go away" appears to have rung true for investors so far this month, however solid buying is helping to support the main All Ordinaries Index (XAO) today on hopes Greece will approve its latest bail-out conditions. At lunchtime in the East, the XAO is up 21.4pts or 0.5pct to 4102.6.

Despite the fact ratings agency Standard and Poor's cut the ratings of five Spanish banks on Friday, our financial sector is holding up well. The S&P/ASX 200 Financials sector is firmer by 0.8pct with Macquarie Group (MQG) higher by 2.5pct to $26.47 and the National Australia Bank (NAB) firmer by 1.2pct to $23.59.

Mining and energy players are also looking good thanks to a rise in the price of oil, gold and copper on Friday night. Shares in index leader BHP Billiton (BHP) are up 1pct to $31.94 while Newcrest Mining (NCM) has added 2.9pct to $25.46.

Elsewhere shares in engineering company Hastie Group (HST) have been suspended from trade after the company called in the administrators. Thousands of jobs at the company are now at risk. HST last traded at 16c.

The Australian dollar has recovered a little ground against the greenback and at 12.45pm AEST is worth US98.5c. It's also buying £0.6274 and €78.21c.

Wall Street will be closed tonight for Memorial Day holiday.

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