Australian Stock Market Report – Midday 7/25/2012

LUNCHTIME REPORT
(12.45pm AEST)

The Australian share market opened lower this morning after overseas markets continued to fall overnight. The concerns over European debt, growth and miss management continue to rock market. Weaker than expected European manufacturing data and more drama in Greece also added to the pain.

US markets opened lower off nearly 200 points then by the close the markets had regained half its losses to end down 100pts lower. Weak reports from the corporate world and US poor manufacturing numbers took their toll on US stocks.

After the close of the US markets, Apple reported. Unfortunately Apple numbers were lower than the market had expected with revenue hitting US$35.02Billion. Apple sold 26 million iPhones, up 28% over the quarter and 17 million iPads.

Locally The All Ordinaries Index (XAO) opened 35 points lower, but by lunch time the market had regained a little of the lost ground and at 12.45pm The All Ordinaries Index (XAO) was off 17 points to 4,142 points.

All 11.30am (AEST) the market received The Australian Bureau of Statistics Consumer Price Index (CPI) report. The inflation numbers showed a 0.5% rise in prices cost in the June quarter, after a 0.1% gain in the March quarter. The biggest increases came from medical and hospital services, higher rental, and vegetables. While costs related to domestic travel and accommodation and electronics fell in price.

Mining stocks started the morning weaker but by lunchtime the losses were mainly in the larger base metal miners while the gold and silver miners moved higher. The US gold price did hold steady overnight and has only added US$6 an ounce in Asian trade.
Newcrest Mining Limited (NCM) up 4.4% to $22.13, AngloGold Ashanti Limited (AGG) up 3%. Alacer Gold Corporation (AQG) up 8%, while St Barbara Limited (SBM) up only 0.35%. Fortescue Metals Group (FMG) turned higher in early trade and by lunch had added 1.7% to $4.10. Rio Tinto (RIO), still lower, off 1.1% to $51.18, still higher than its opening price this morning of $50.50. BHP Billiton Limited (BHP) also down 0.06% to $30.91, after adding $0.50c a share in the last hour.

Financial stocks lower, S&P/ASX 200 Financials sector off 0.63%, with the big 4 banks all lower and weakness in Macquarie Group's (MQG)share price. Macquarie down 1.44pct to $24.96 after telling the market it does expect that it will post a better result for the full 2013 if conditions stay steady. Commonwealth Bank of Australia (CBA) off 0.31% to $54.61, while Westpac Banking Corporation (WBC) off by 0.8% to $22.44. The National Australia Bank (NAB) shares fell 0.5pct to $23.54.

No new news from Billabong Limited (BBG) after private equity firm TPG made a second play for embattled surf wear retailer yesterday. BBG shares up 0.19% to $1.31, after the firm said yesterday morning that investors should not take any action on the takeover.

Elsewhere, Stockland (SGP) told the market that its managing director Matthew Quinn will retire in February next year after holding the top job for the last 11 years. Stockland also told investors it had cut earnings per share forecast for the 2012 financial year to $0.29.3 cents a share below the previous number of $0.29.8 cents. Stockland share price lifted by 0.31% to $3.21 and Westfield Group (WDC) off 1.1% to $9.65 with Goodman Group (GMG) off by 2.47%.

Blood and plasma maker, CSL Limited (CSL) one of the best performing stocks today, up 2.5% to $41.32 while Sonic Healthcare Limited fell another 1.6% to $12.43.

Coca-Cola Amatil Limited (CCL) higher by 0.9% and Wesfarmers Limited(WES) the owner of Coles and Bunnings off 1.12% ahead of the release of its quarterly sales numbers out tomorrow.

The Australian dollar moved higher back by midday after early losses with the Aussie now at US102.29c. It's also now worth €0.8474.

[Kick off your trading day with our newsletter]