Australian Stock Market Report – Midday October 13, 2014

A man is reflected as he walks 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 (AUSTRALIA - Tags: BUSINESS POLITICS)

More of the same

 Local shares continue to fall and one of the most common exchanges between market participants at present turns around the level at which the ASX 200 will ultimately find some durable support with the index now down by more than 3 per cent year to date. European shares fell sharply to end last week, driven by continuing concerns about the health of the German, and broader European economy. US share markets were led lower by the technology stocks. Over the course of the week the Dow Jones lost 2.7% with the S&P 500 down 3.1% while the NASDAQ lost 4.5%. Over the same period the ASX 200 shed 0.6%.

 Investors remain wary of energy stocks in the face of global growth concerns at the same time that oil markets are becoming increasingly well supplied. In recent days the ECB highlighted signs the European economic recovery may be slowing. Sentiment was dented after the Chinese Academy of Social Sciences, a Chinese government-backed research organisation, downgraded China's economic growth forecast from 7.3% to 7.0% in 2015. Crude oil benchmarks rebounded at the end of last week after falling to multiyear over the course of the last 5 days. WTI (NYMEX) crude steadied to end at $85.82 on Friday, although over the course of the week it shed 4.4% and is down 7% for the month.

 Bendigo and Adelaide Bank (BEN) announced that it will become a shareholder in one of Australia's largest payment providers Cuscal, following the proposed acquisition of Strategic Payments Services (SPS), a leading Australian electronic payments services provider. SPS is a joint venture launched by Bendigo Bank and MasterCard in 2006. The arrangement will proceed if shareholders approve the transaction at the Cuscal's annual general meeting in November. If shareholders approve the proposal at the AGM in November, Bendigo and MasterCard will both assume a ten per cent stake in Cuscal. BEN shares were down 1.5% at lunchtime

 Property group Stockland (SGP) announced that it had acquired Sugarland Shoppingtown in Bundaberg QLD for $59.25 million from fund manager AMP Capital. The group said that the "transaction fills a gap in our Queensland retail footprint. While investing in, and successfully redeveloping, Stockland Hervey Bay, we learnt a lot about Bundaberg and identified it as a trade area where we want to be active" SGP share were down 4.5 cents or 1.1 per cent a short time ago.

 Shares in energy and mining services provider WDS (WDS.AU) slumped after warning that earnings will be suffer after missing out on an energy contract for a coal-seam gas project and problems on the Eagle Downs coal mine development. The shares are down 67% at $0.27. The group expects net profit to come in between $1 to $3 million in the year to June and revenue is tipped to be in a range of $330 to $350 million.

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