Australian Stock Market Report – Midday 6/29/2012

LUNCHTIME REPORT
(12.30pm AEST)

The retail sector is buzzing on the last trading day of the financial year, with upmarket retailer David Jones (DJS) the subject of a takeover offer. The overall share market is trading flat, with the All Ordinaries Index (XAO) unchanged at 4085.1.

David Jones Chairman Robert Savage says the company has received an unsolicited takeover approach from a non-incorporated UK entity, but that DJS doesn't have enough information at this time to value the approach. DJS shares are up 13.3pct at lunchtime in the east to $2.56, after hitting a high of $2.69 earlier. Myer Limited (MYR) is also rallying on the takeover bid, its share price up 3.9pct to $1.60.

Elsewhere on the market, News Corporation (NWS) shares are down 1.7pct to $22.20 after rallying earlier this week on speculation Rupert Murdoch's empire would split in two. Overnight it was confirmed the global media empire group would split its newspaper and book publishing business from its faster growing movie and television divisions. However the Australian interests will not be split.

Today is the last trading day of the financial year, with the market set to end FY 2011/12 down around 10pct. In real terms, when you include shareholder returns and dividends, the market is down around 8pct. The best performing stock this year on the ASX 200 has been Buru Energy (BRU), which has risen 380pct in 12 months. Today BRU is trading at $3.15. Meanwhile Mirabella Nickel (MBN) has been the worst performing, down 85pct. Today MBN is up 11pct to $0.26.

The Australian dollar is buying US100.5c, £0.6467 and €80.72c.

[Kick off your trading day with our newsletter]