Australian Stock Market Report – Midday 6/25/13

MID-SESSION UPDATE

(12.30pm AEST)

The Australian share market is clawing back ground after a day of selling across the Asian region, and weakness in European and US share markets overnight.

Yesterday the Shanghai Composite suffered its worst session in four years, as investors sold out of equities as short term borrowing costs rose.

Locally, we are seeing a comeback in financial stocks, as bargain hunters pick up the big four. The financial sector is firmer by 0.4 per cent.

We are still seeing weakness from mining players, due to a fall in commodity prices overnight. Copper fell to a three year low, while gold was also under pressure. Oz Mineral (OZL) is down 0.6 per cent at lunchtime in the East, while Newcrest Mining (NCM) shares are also being sold off.

In positive company news, food manufacturer Goodman Fielder (GFF) is up 4.2 per cent to 74c on a profit upgrade. The company says a turnaround in its baking unit will add an extra 15-20 per cent to its 2H pre-item earnings.

Leighton Holdings (LEI) is also in positive territory after winning a $1.15 Billion JV project to construct the tunnels and excavate new underground stations for Sydney's north-west rail link.

No economic data has been released today and the Australian dollar is firmer at US92.59c, £0.5995 and €70.55c.

So far on the market, 858 million shares have changed hands, worth $2.2 billion. 300 are up, 509 are down and 379 are unchanged.

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