Australian Stock Market Report – Midday 7/5/13

MID-SESSION REPORT
(12.30pm AEST)

One of the more volatile weeks in recent memory is coming to a close and investors are helping push the market higher. The All Ordinaries Index (XAO) is up 0.9 per cent. The dollar value of shares changing hands is remaining a little light though, due to the closure of US markets last night (Independence Day holiday).

The gains in Europe were significant last night, with shares in Germany jumping by 2.1 per cent, France's CAC40 was up 2.9 per cent and Italian stocks shot higher by 3.4 per cent. The UK's FTSE also improvement by 3.1 per cent.

Statements from the heads of both the European Central Bank and the Bank of England signalled that rates are likely to remain at these low levels for the foreseeable future, helping push European equity markets higher.

The casino operators have had an eventful week. Yesterday, NSW Premier Barry O'Farrell endorsed James Packer's plan for a second Sydney casino. Both James Packer's Crown (CWN) and the company behind The Star, Echo Entertainment (EGP) entered trading halts yesterday. Today, as expected, CWN shares are up 3.7 per cent, while EGP is trading at an all-time low, falling by 4.1 per cent.

Biopharmaceutical company, CSL Limited (CSL) has released some results from ongoing studies relating to its haemophilia portfolio at an international conference. This has been seen as a positive development by investors. This particular portfolio accounts for around 20 per cent of total sales. The weakness in the Australian dollar is also a positive for CSL as it generates around 87 per cent of sales offshore. CSL is up 1.1 per cent today.

Telstra (TLS) has signed a five-year, $32 million deal to protect government agencies from both hacking attempts and online viruses. TLS is up 0.9 per cent, taking the gains for the calendar year to 8.2 per cent.

All eyes are focused on the US non-farm payroll report tonight. This is the most important monthly reading on the health of North America's jobs market. The creation of around 170,000 jobs is forecast by economists.

At lunch, 658m shares have changed hands, worth $1.3 billion. 499 stocks are higher, 250 are in the red and 240 are unchanged.

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