Australian Stock Market Report – Midday 8/15/2012

LUNCHTIME REPORT
(12.30pm AEST)

Local stocks are trading in the red at lunchtime, following an unconvincing offshore lead and mixed commodity prices. A report showing the Eurozone economy shrank in the second quarter met expectations, and European shares rose in thin trade, however US markets were again mixed as were commodities. At midday in the East, the All Ordinaries Index (XAO) is down 22.5pts or 0.5pct to 4294.9.

The Commonwealth Bank (CBA) today reported a 4pct rise in annual cash profit to $7.11 billion, broadly in line with consensus. CBA will pay shareholders a final dividend of $1.97 per share, which is higher than was expected. CBA shares are firmer by 0.6pct to $55.86 however other financial stocks are all trading lower. The National Australia Bank (NAB), which disappointed with its third quarter trading update yesterday, is down 1.2pct to $24.40.

Also today, shopping centre owner Westfield has released its first half profit, which rose more than 30pct to $800.1 million, despite a 10pct drop in revenue due to tough trading conditions. WDC shares are up 0.6pct to $9.64 in early trade.

Oz Minerals (OZL), which is involved in the production of copper and gold from the Prominent Hill mine in South Australia, saw its first half profit rise 5pct to $119.5 million, up from a year earlier when earnings were weighed down by legal and tax charges. However the company announced an unfranked dividend of 10c per share, down from 30c last year. OZL shares are down 6.7pct in early trade to $7.39.

Casino operator Echo Entertainment, which split from Tabcorp Holdings (TAH) in June last year, saw its net profit come in at $42.2 million. The result was hit by the write-down from its liquidation of its SilkStar and higher operating costs due to ongoing processes after the opening of Star Casino in Sydney. EGP shares are down 2pct at lunchtime to $4.11 per share.

The Australian dollar is weaker across the board and at 12.30pm AEST is worth US104.72c, £0.6683 and €84.98c.

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