Australian Stock Market Report – Midday 8/10/2012

LUNCHTIME REPORT
(12.10pm AEST)

The local share market is trading lower at lunchtime in the East, following a mixed finish on Wall Street and weakness in financial stocks. The All Ordinaries Index (XAO) is down 14.1pts or 0.3pct to 4316 at midday in the East.

Among the companies reporting earnings today, casino operator Crown Limited (CWN) has posted a 53pct rise in annual profit to $513.3 million, up from the previous year's earnings of $335.9 million. Crown said in a statement that profit was helped by its Melco Crown Entertainment joint venture in Macau. Its Australian casinos, in Melbourne and Perth, were hit by competition from new gambling resort developments in Singapore, as well as by weakening consumer sentiment in Australia. Normalised profit, which the company says best reflects its performance, up 22pct to $415 million. CWN shares are up 2pct in early trade to $8.69.

Meanwhile property management and development company Goodman Group (GMG) has increased its full year profit to $408 million, as it expands overseas. The company recently moved into North America and is also looking for opportunities in other parts of the world. Operating profit in the year to June rose 21pct to $463.4 million. GMG shares are up 0.8pct to $3.83 at lunchtime.

The Reserve Bank has today released its monthly Statement on Monetary Policy, highlighting the risks our strong dollar is creating. "The exchange rate has been high for some time ... (and) it is possible that the persistently high level of the exchange rate may be more contractionary for the economy than historical relationships suggest," the RBA said in its statement.

The Aussie dollar hit US106c this week but pulled back overnight after weaker than expected Chinese data was released yesterday. At lunchtime in the East, the Aussie is buying US105.6c, €85.87c and £0.6756.

In early trade, 647 million shares have changed hands, with a market value of $1.5 billion.

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