Australian Stock Market Report – Midday 6/6/2012

LUNCHTIME REPORT
(12pm AEST)

The Australian share market is trading relatively flat in the early session, with the main indices see-sawing between positive and negative territory. Stronger than expected GDP numbers saw the All Ordinaries Index (XAO) hit a high of 4112 points just after 11.30am AEST, but at midday in the East the market has pulled back a little. The XAO currently firmer by 8pts to 4100.4.

Economic data released today showed the Australian economy grew by 1.3pct in the March quarter, almost double what was anticipated by economists. Household spending drove the rise, with the economy growing at a 4.3pct annual pace. The Aussie dollar jumped almost a cent on the data and at 12pm AEST is worth US98.46c.

On the share market, shares in the Ten Network (TEN) are in a trading halt as the company attempts to tap the market for $200 million through a capital raising. TEN is hoping to strengthen its balance sheet by offering new shares, Existing shareholders will be offered three new shares for every eight held, at a discount price of $0.51. TEN last traded at $0.64.

Meanwhile, Qantas (QAN) continues to plummet to all-time lows, in the wake of yesterday's profit warning. Australia's largest carrier told the market on Tuesday that it expects full year earnings could fall by as much as 91pct due to European woes, soaring fuel bills and the cost of industrial action undertaken by some of its workers in the past year. QAN is currently down 4.3pct to $1.105.

CommSec will have a full report on March GDP or economic growth figures for clients on the News and Research page of our website this afternoon.

[Kick off your trading day with our newsletter]