Australian Stock Market Report – Midday 8/17/2012

LUNCHTIME REPORT
(1.10pm AEST)

Local stocks are continuing to add to yesterday's gains, thanks to strong earnings results and positive offshore leads. European and US share markets moved higher overnight on hopes of further stimulus measures after German Chancellor Angela Merkel voiced support for the European Central Bank's efforts to support the Eurozone. Mid-session, the All Ordinaries Index (XAO) is up 28.2pts or 0.6pct to 4381.7.

Investors appear to like the latest trading update from the ANZ Bank (ANZ). The bank has seen its underlying profit over the past nine months rise by 5.5pct to $4.5 billion. ANZ shares are up 2.3pct at lunchtime to $24.44.

Elsewhere in the energy space, a solid first half result from Santos (STO) has seen its share price rise 4.5pct in early trade to $11.94. STO reported a 20pct rise in underlying profit for the first six months of the year. Underlying profit came in at $236 million, however net profit was down 48pct to $262 million.

Meanwhile insurer QBE's (QBE) profit has missed the mark, coming in at US$760 million in the first half, slightly below expectations. QBE shares are down 5.3pct to $12.94 in early trade.

The greenback eased against a basket of currencies overnight with comments from German Chancellor Angela Merkel increasing risk appetite. At lunchtime in the East, the Aussie dollar is buying US104.99c.

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