Australian Stock Market Report – Midday 8/14/13

MID-SESSION REPORT
(12.30pm AEST)

Investors tried it all this morning, with the Australian sharemarket a little higher on the open, in the red around an hour into trade and completely flat at lunch.

Global stocks were buoyed by some upbeat economic news and comments from the head of Atlanta's Federal Reserve (there are 12 US central banks across North America). President Lockhart seemed not overly keen to taper Quantitative Easing (QE) in a speech overnight.

Economists were focused on this month's consumer confidence reading, which rose by 3.5 per cent for August at 11.30am (AEST). Perhaps this shouldn't come as a huge surprise however, with the federal election being called early this month together with an RBA interest rate cut.

The reporting season is heating up today (busiest day of the earnings season so far). Computershare (CPU), Leighton Holdings (LEI), CSL and OZ Minerals have already issued their profit results.

CPU, the world's biggest share registry disappointed the market with a 9.2 per cent slump in full year profit. Earnings were driven by US acquisitions rather than activity from its core business. This environment remains challenging for CPU (the more corporate actions, M&As and company activity - the better from a revenue standpoint). CPU maintained its $0.14 dividend and will be paid to eligible shareholders on 17 September. CPU is down 5.1 per cent.

Construction company, LEI more than tripled its profit, however warned that challenges remain in the sector. LEI shares are down 5.5 per cent.

Blood products and vaccine provider, CSL is down 2.8 per cent despite announcing a 19 per cent rise in full year profit, thanks in part to better sales of an infection fighting infusion in North America and Europe.

Australia's biggest listed company, Commonwealth Bank of Australia (CBA) cracked through an all-time high of $75 briefly, only to fall back to $73.86 at around 12.30pm.

At lunch, 817.9 million shares changed hands, worth $2.5 billion. 416 stocks are higher, 382 are in the red and 268 are unchanged.

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