Australian Stock Market Report – Midday January 16, 2015

IN PHOTO: Office workers are reflected as they walk past the Australian Securities Exchange building in central Sydney April 8, 2011. Singapore Exchange Ltd has terminated its $8 billion bid for Australia's ASX Ltd after the Australian government formally rejected the offer on national interest grounds and said changes to the country's financial systems were needed before the bourse could be bought by foreigners. REUTERS/Daniel Munoz

 Australian shares are falling for the fifth straight day with the ASX 200 Index down by 0.7 per cent. This takes the falls this week to 3 per cent; making it the worst week since June 2013 for local stocks. This is also only the third time in 12 months the ASX 200 has lost ground from Monday through to Friday.

 Global markets lost ground overnight with US shares easing for the fifth day. The number of Americans applying for unemployment benefits from the US government hit a four month high last week, the price of oil erased most of Wednesday's gains and the Swiss National Bank surprised the market after calling an end to its policy of capping the Swiss franc against the Euro.

 Telstra (TLS) is up 0.3 per cent after hitting a fresh 13.5 year high earlier for the fourth consecutive day. Shares in Australia's biggest telecommunications company hit a high of $6.28 per share on the open; a full 3.5 per cent above last Friday's close.

 CSL shares are down 4.6 per cent despite no major news announced by the biotech firm. CSL is by far the largest company in the ASX's healthcare sector. CSL rose by 25 per cent in 2014 and has been one of the more popular stocks in recent years.

 The price of gold hit a four month high overnight of US$1264.8/ounce which is helping producers of the metal. Newcrest Mining (NCM) is up 6.2 per cent, Evolution Mining is up 4.4 per cent and Northern Star (NST) is up 7 per cent.

 BHP Billiton (BHP) is the single biggest contributor to the ASX 200 at lunch with the mining giant up 1.5 per cent. Despite today's gains in the sector, the miners slumped by 6.5 per cent from Monday through to Thursday this week.

 Energy stocks are also underperforming with the sector down 1.8 per cent at midday. The price of oil remains volatile after slumping by 4.6 per cent overnight and erasing most of Wednesday's 5.5 per cent gains. OPEC said it expects demand for the group's oil to remain weak this year.

 No major economic data is scheduled for release today in Australia or the region. Plenty of data will be released in the US including consumer prices (inflation), industrial production and consumer sentiment readings. The US market will be closed on Monday for Martin Luther King Jr day.

 Volume is a little light at lunch with 617.9m shares traded worth $1.7bn. 292 stocks are up, 434 are down and 277 are unchanged.

 The Australian dollar was volatile against the Swiss franc overnight following the Swiss National Bank's decision to scrap its three year policy of capping the franc against the Euro. Australian travellers to Switzerland are around $140 worse off for every $1000 worth of spending money compared to just 24 hours ago.

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