Australian Stock Market Report – Midday 6/6/13

MIDDAY REPORT

(12.30pm AEST)

The Australian share market remains under selling pressure on Thursday following weakness from offshore markets. The Aussie dollar has also been under pressure in early trade, briefly dipping below US95c for the first time since October 2011.

We are seeing widespread selling, although in the financial sector the National Australia Bank (NAB) and Macquarie Group (MQG) shares are in positive territory.

Gold stocks are under pressure despite the price of the precious metal rising back above US$1400 an ounce in electronic trade. Newcrest Mining (NCM) shares are lower by 5.5 per cent to $13.56 at lunchtime in the east.

Media company Fairfax (FXJ) has updated the market today on its restructure plans, announcing the company is on track to deliver an extra $60 million in savings by September, on top of the $251 million already announced. CEO Greg Hywood says the restructure involves all of the company's publishing activities to be simplified into one division. The savings will come from reducing duplication across the business, but with an emphasis on minimising the impact on content and sales. There was no mention of further job cuts today however Fairfax is already in process of shedding 1900 jobs. FXJ shares are down 3.8 per cent at lunchtime to 57.75c.

In economic news today, Australia's trade balance recorded its third consecutive monthly surplus in April, despite a fall in exports. April trade surplus came in at $28 million versus $180 million consensus. Exports were down one per cent on the month, while imports were up one per cent on the month.

So far on the market, 666 million shares have changed hands, worth $2.22 million. 210 are up, 572 are down and 303 are unchanged.

The Australian dollar briefly fell below US95c today, but at lunchtime in the East is worth US95.02c and £0.6171.

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