Australian Stock Market Report – Midday December 31, 2014

IN PHOTO: Today's Ordinaries Index curve is seen at the Australian Securities Exchange (ASX) in central Sydney August 23, 2010. Australian financial markets bet on Monday that inconclusive weekend elections would deliver a change of government, ushering in a new minority conservative administration that would scrap a planned mining tax. REUTERS/Daniel Munoz

 Australian shares are flat in what has been a volatile but quiet week for local stocks. The ASX 200 is up just 2pts at lunch, slumped by 1 per cent yesterday and surged by 1.5 per cent on Monday. It has been half as busy as usual so far this week - with investors in holiday mode. Today is likely to be an uneventful session for the Australian market as the ASX will be closing at 14:10pm AEDT (two hours earlier than usual).

 A number of markets will close early in the region today including sharemarkets in Hong Kong, Singapore and New Zealand. Markets in Japan, Indonesia, Thailand and the Philippines are closed today.

 Global markets finished weaker overnight with the Dow Jones Industrial Index (a measure of 30 of the largest US companies) closing below 18,000 points for the first time in a week while shares in Europe slumped by more than 1 per cent.

 Energy stocks are up 0.9 per cent after yesterday's 2 per cent slump. The price of oil improved by 1 per cent overnight which is helping Woodside Petroleum (WPL) rise by 0.4 per cent while Santos (STO) is 0.9 per cent higher.

 Mining companies are up 0.4 per cent following Tuesday's 1 per cent slump. The price of iron ore surged by 4.6 per cent to US$71.2/tonne while gold improved by 1.6 per cent. Newcrest Mining (NCM) is up 1 per cent while BHP Billiton (BHP) is one of the few miners to be lower at lunch.

 Markets this year globally have had mixed performances. Shares in Australia are up just 1.2 per cent and are underperforming most in the region. Shares in Shanghai have surged by 49 per cent while Japan's Nikkei is up 7 per cent. The S&P500 in the US has improved by 12.5 per cent, while European equities have been sluggish.

 Most sectors in Australia improved this year. Property trusts have surged by 23 per cent, healthcare stocks are up 21 per cent, while telcos are up around 14 per cent. A close to halving in value of iron ore and oil since 1 January has pushed both the energy and mining industries 15 per cent lower Year-To-Date (YTD) (since 1 January).

 Qantas (QAN) has been one of the best improvers; surging by 119 per cent this year, while iron ore producers were hardest hit. FMG is down 52 per cent while smaller producers Atlas Iron (AGO) and BC Iron (BCI) have slumped by 80 per cent YTD.

 Volume is light at lunch as expected with 359.2m shares traded worth just $598.4m. 425 stocks are up, 231 down and 262 are unchanged.

 The Australian dollar buys US$0.818, €0.673, £0.525 and ¥97.7.

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