Australian Stock Market Report – Midday 6/13/13

MIDDAY REPORT

(12pm AEST)

The Australian share market is holding at lows for the year, following more falls on offshore markets overnight and despite a slight revision to Australia's unemployment rate.

Every sector is in the red. The energy sector has fallen by 2.4 per cent while materials are weaker by 2.3 per cent.

In the financial sector, Westpac (WBC) shares and the ANZ (ANZ) are firmer while the overall sector is weaker by 0.4 per cent.

Queensland based financial services conglomerate Suncorp Group (SUN) has offloaded $1.6 billion worth of non-performing loan portfolio (or "bad bank" assets) to Goldman Sachs for 60 cents in the dollar. The portfolio includes loans related to corporate and property assets. SUN shares are down 0.7 per cent in the early session to $11.78.

According to ABS data, 1,100 jobs were created in the Australian economy in May. The unemployment rate has been revised slightly down to 5.5 per cent.

The Australian dollar briefly rose on the jobs data to above US95c but has fallen back to US94.6c mid-session.

In the Asian region today, Japan's Nikkei Index has fallen a further 5 per cent and is now technically in "bear" market territory.

So far on the market, 831 million shares have changed hands, worth $2.3 billion. 223 are up, 529 are down and 340 are unchanged.

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