Australian Stock Market Report – Midday October 23, 2013

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 treading water ahead of an update on China's manufacturing sector at 12.45pm AEDT. The All Ordinaries Index (XAO) is down 0.1 per cent, losing ground for the first time in almost two weeks.

 Global markets finished mixed overnight. US shares ended softer with the S&P500 index down 0.7 per cent. European stocks managed to finish mostly firmer partly due to strong corporate profit results.

 Mining stocks are sliding by 1.4 per cent and are the main drags following strong gains on Wednesday. The world's largest mining company BHP Billiton (BHP) is down 1.7 per cent after rising by 1.5 per cent yesterday. BHP delivered a 9 per cent rise in quarterly production, a 17 per cent surge in iron ore production and maintained its full year guidance.

 Oil Search (OSH) is down 1.3 per cent despite delivering an 81 per cent rise in quarterly production and a 58 per cent surge in revenue between July and September. The result was driven by its PNG LNG project coming online in May ahead of schedule. OSH has also promised to increase its dividend payments to shareholders as profits rise.

 Plenty of Annual General Meetings with shareholders today. Suncorp (SUN), Skilled Group (SKE), Toll Holdings (TOL), Blackmores (BKL) and Investa Office (IOF) are all meeting investors.

 AGL Energy (AGK) is down 1.2 per cent despite flagging a rise in underlying profit the year. The natural gas and electricity retailer is meeting with investors today at its AGM.

 Flash Manufacturing PMIs will be released in both Japan (12.35pm AEDT) and China (12.45pm AEDT) today. Our two largest trading partners have enjoyed only modest growth in their manufacturing industries. Manufacturing accounts for close to half of China's economic growth each year.

 Volume remains light ahead of Chinese economic news out this afternoon. 854.2m shares have been traded worth $1.4bn. 374 stocks are up, 383 are down and 280 are unchanged.

 The Australian dollar buys US$0.875 and €0.69.

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