Australian Stock Market Report – Midday 6/21/2012

MIDDAY REPORT
(12pm AEST)

The Australian share market is back in the red today, after US investors gave a muted response to the Federal Reserve's latest plan to stimulate the economy. Instead of announcing fresher, bigger measures such as the much hoped for QE3 stimulus program, the Fed opted to extend its asset purchasing program (Operation Twist) for another six months. At lunchtime in the East, the All Ordinaries Index (XAO) is down 20.5pts or 0.5pct to 41536.3.

Energy stocks are amongst the worst performers, following a slide in the crude oil price overnight. The Nymex contract dropped almost 3.5pct to US81.45 a barrel following a surprising build in US oil inventories. The energy sector is down 1.7pct in early trade.

Financial stocks are also giving back gains, with shares in the National Australia Bank (NAB) down 0.7pct to $23.28 and Macquarie Group (MQG) lower by 1.8pct to $25.53.

Elsewhere today, media and advertising company APN News and Media (APN) has made a push into online retail. APN has acquired an 82pct stake in brandsExclusive, a website which was launched in 2009 and is tipped to generate $70 million in revenue this calendar year. APN has made $36 million for the controlling stake. AON made a $45 million loss last financial year.

The Australian dollar remains strong and at lunchtime in the East is worth US101.81c, £0.6488 and €80.35c.

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