Australian Stock Market Report – Midday 5/30/13

LUNCHTIME REPORT

(12.15pm AEST)

Australian stocks have hit a 5 week low in early trade following weakness on Wall Street overnight and a cut to global growth forecasts from the OECD.

In early trade, the All Ordinaries Index (XAO) is down one per cent.

Financial players remain under pressure again, with the sector down one per cent. Shares in the National Australia Bank (NAB) have fallen 3.8 per cent to $29.39 as the lender trades without rights to its 93c dividend.

Mining players are giving back yesterday's gains. Fortescue Metals Group (FMG), one of yesterday's stand-out performers id down 5.2 per cent to $3.34.

The Australian Competition and Consumer Commission (ACCC) has today given the green light to a potential takeover of agribusiness Elders by rival RuralCo (RHL). Debt laden Elders has been looking to sell its agricultural products business since 2012. RuralCo has expressed interest in the business but is yet to finalise a takeover proposal. ELD shares have risen by 20 per cent to 12c while RHL is firmer by 7.6 per cent to $3.26.

Companies which performed well yesterday on a weaker Aussie dollar are giving back today after the dollar strengthened against the greenback. Cochlear (COH) and CSL Limited (CSL) in the healthcare sector are both weaker in the early session.

The Australian dollar is buying US96.56c at lunchtime in the East. It is also worth €74.53c and £0.6382.

So far 698 million shares have changed hands, worth $3.35 billion. 283 are up, 444 are down and 312 are unchanged.

In economic data today, Australian capital spending slowed sharply in the March quarter, down 4.7 per cent versus 0.5 per cent growth consensus.

[Kick off your trading day with our newsletter]