Australian Stock Market Report – Midday 6/12/13

MID-SESSION REPORT
(12.15pm AEST)

At midday, the ASX 200 Index is down by around 0.7 per cent. Gains from the telcos are not enough to offset the much more substantial falls elsewhere. Losses from the banks and the miners are contributing most to the falls.

Australia's biggest telco, Telstra (TLS) is up 0.98 per cent, taking the gains to 6.3 per cent this calendar year.

The banks are down by as much 1.4 per cent, with Westpac (WBC) the worst of the majors. ANZ Banking Group (ANZ) is down 1.3 per cent, while both Commonwealth Bank (CBA) and National Bank (NAB) are not escaping the sell-off. The banks make up around 30 per cent of the local sharemarket based on current market capitalisation.

The operator of the Australian sharemarket, ASX Limited (ASX) remains in a trading halt after announcing plans to raise $553 million through a renounceable rights issue yesterday. ASX has three main goals with this capital raising. Firstly, to pay down around $250 million worth of debt, to top up equity and thirdly to help fund its growth plans. ASX shares are up 14.8 per cent this year.

On the economic front, many were surprised by a much better than expected consumer confidence reading. Confidence jumped by 4.7 per cent in June despite the weaker Australian dollar, a 9 per cent fall in the local sharemarket and higher petrol prices. Keep in mind that confidence slumped in April and May. Better confidence tends to result increased spending.

The confidence figures helped push the Australian dollar higher at 10.30am (AEST). Market expectations for a rate cut now sit at around 40 per cent for July; almost 10 per cent lower than at the start of the week.

A number of public holidays across the region are keeping things quiet across Asia Pacific today. Markets are closed in China, Hong Kong today, with holidays also in Taiwan and the Philippines.

At lunch, 727 million shares have changed hands, worth $1.96 billion. 248 stocks are edging higher, 511 are lower and 319 stocks are unchanged.

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