Australian Stock Market Report – Midday 7/26/2012

MIDDAY REPORT
(12.30pm AEST)

The local share market is tracking higher in the early session, boosted by company news and a lift in blue chip US shares overnight. At lunchtime in the East, the All Ordinaries Index (XAO) is up 10.8pts or 0.3pct to 4162.2.

Financial stocks are well supported, with the sector up 0.3pct. Shares in Westpac (WBC) have gained 0.6pct in early trade to $22.57 while Macquarie Group (MQG) is firmer by 1.8pct to $24.31.

Oil refiner Caltex (CTX) has today announced plans to close its Kurnell plant in Sydney in the second half of 2014 as part of a supply chain restructure. CTX shares are up 1.7pct in early trade to $14.295, and have been well supported over the past year. There are media reports the closure of the refinery could result in up to 600 jobs losses, however CTX says the number is more like 330 - and a lot of those are expected to be natural attrition, people leaving the workforce or accepting voluntary redundancies.

Elsewhere Qantas (QAN) shares are soaring, up 7pct to $1.06 in early trade, on unconfirmed reports the airline is considering a codeshare with Emirates which would see the Australian carrier fly to Dubai, then be able to tack onto numerous routes through Emirates across Europe and Africa.

Elsewhere, uranium producer Energy Resources of Australia Limited (ERA), has posted an underlying loss of $52 million in the first half of 2012. Today's registered loss was down from the $22 million loss the firm posted in the first half of 2011.
The market was already aware of the expected loss today and ERA management expects demand for uranium to continue. Management also expects China will still be the largest consumer of uranium over the next decade. ERA shares are down 0.3pct at lunchtime to $1.47.

The Australian dollar is worth US103.13c, €84.98 and £0.6665.

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