Australian Stock Market Report – Midday 6/20/2012

LUNCHTIME REPORT
(1pm AEST)

Local stocks are staging a rebound today on the back of positive moves on offshore markets. US shares rose on hopes of further stimulus from the Federal Reserve while European markets rallied to a one month high. Mid-session, the All Ordinaries Index (XAO) is firmer by 21.6pts or 0.5pct to 4189.

Energy and financial stocks are amongst the best performers, with crude oil rising above US$84 a barrel overnight. The energy sector is up 1.5pct while amongst the banks, the National Australia Bank (NAB) has gained 2.4pct to $23.51.

Media stocks are once again in focus today after News Limited Corporation (NWS) made a near $2 billion play for Consolidated Media Holdings (CMJ). NWS is offering $3.50 for every CMJ share in a deal worth $1.97 billion. The offer price is a 14pct premium to CMJ's closing price of $3.08 on Tuesday. It's expected shareholders will agree to the offer which is unlikely to face approval from the competition watchdog, the ACCC. NWS shares are up 0.2pct at lunch to $20.07 while CMJ is firmer by 9.7pct to $3.38.

Elsewhere, Seven Group Holdings (SEV), which has a 24.4pct stake in CMJ is firmer by 2.8pct to $8.11. Shares in Telstra (TLS) are down 0.6pct to $3.62. If the deal goes through, Telstra will become an equal partner with NWS in Foxtel.

The Australian dollar remains strong across the board and is buying US101.84c, £0.6478 and €80.33c..

[Kick off your trading day with our newsletter]