Australian Stock Market Report – Midday 7/15/13

1.50pm (AEST)
MID-SESSION Report.

After a slim gain on US markets on Friday the Aussie market has started off slightly stronger. Then by 11.50am the All Ordinaries Index (XAO) only off 6pts.

This morning the market attentively awaiting the outcome of the Chinese Economic data that is due out at 12 noon (AEST). We are expecting economic growth (GDP) of the June Quarter where the market is expecting a list of 7.7%. We will also receive retail sales and industrial production data for the month of June. Industrial production will be the key for the Aussie miners and the market is looking for a read around 9.3% growth over the month.
At the start of today's session most of the S&P ASX sectors were higher but not by much then slipped into the red.

Investors are really playing a waiting game today. Mining stocks were also generally lower and energy stocks down even with the lift in the oil prices to over US$106 a barrel. Diversified investment firm Washington H. Soul Pattinson and Co. Limited (SOL) doing well up 2.4% and Linc Energy (LNC) up 9.5% after releasing its production update on its Cedar point Field in Texas.

Gold stocks starting to trend lower, Newcrest Mining Limited (NCM) off 5.25% even with the US$ COMEX Gold price in early Asian trade now up $12 to US$1,290/oz.
Caltex Australia Limited (CTX) shares moved into the red as clean up continues after the oil spilt at its Sydney fuel terminal on Friday. CTX share price now off 1.2%

Professional services firm WorleyParsons Limited (WOR) announced that it had won a new management servicing contract for multibillion $US gas project called Sasol. So far there is no comment on size of contract but it has pushed the share price higher early but then in the red now off 1.6%

S&P/ASX 200 Consumer Discretionary sector is one of the best performers this morning helped by a lift in twenty-First Century Fox, Inc. (FOX, formerly News Corporation (NWS)share price up 2.1% and Digital advertising business REA Group Limited (REA) up 3.4%
Treasury Wine Estates Limited (TWE) confirmed that fiscal 2013 EBIT (Earnings before income tax) will be in line with current market consensus of $216Million, before material items including this provision. But also reported a $160Million (before tax) provisions in the fiscal 2013 year on the back of expected fall in US shipments in fiscal 2014 because of the growing wine glut in the states and lower demand for Aussie product. TWE off 12.2% to $5.13

Elsewhere, Telstra (TLS) shares slightly higher up 0.5% to $4.76, while Woolworths (WOW) and Wesfarmers Limited (WES) moved lower.

The AUD rebalancing ahead of the Chinese GDP read and the Japanese markets closed for Marine Day- back on line tomorrow.

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