Australian Stock Market Report – Midday 6/15/2012

LUNCHTIME REPORT
(12.15pm AEST)

After a shaky start the Australian share market is gaining some traction at lunchtime in the East, on the back of a strong rise on Wall Street. Markets there rose on news that major central banks are preparing for controlled action if the Greek elections being held this weekend result in financial market turmoil. After two hours of trade, the All Ordinaries Index (XAO) is up 14pts or 0.3pct to 4103.8.

Energy players are leading the gains, with crude oil coming back from an eight month low overnight, rising almost 2pct to US$83.91 a barrel. Shares in Woodside Petroleum (WPL) are up 0.8pct to $32.30 in early trade while Santos (STO) is up 0.6pct to $11.65.

Financial stocks are holding their ground, with Macquarie Group (MQG) up 1pct to $25.40.

Shares in casino operator Echo Entertainment (EGP) are in a trading halt as the company attempts to tap the market for $454 million. Echo has this morning announced it is expecting a big drop in FY earnings due to weak consumer sentiment, tipping earnings of between $270 to $315 million, down from $347 million in previous financial year. Echo is now seeking to raise $454 million through issuing of new shares in a bid to cut its debt. Shares will be sold at a discount of $3.30, 26.5pct lower than its last trading price of $4.49. James Packer's Crown Limited (CWN) is expected to take up its full entitlement of the offer but won't exceed its 10 pct stake in Echo. CWN is up 0.4pct to $8.61.

The Australian dollar is back above parity and at lunchtime in the East is buying US100.15c, £0.644 and €79.29c.

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