Australian Stock Market Report – Midday September 25, 2014

n office worker walks past an Australian Securities Exchange (ASX) window showing the main losses for the day in central Sydney July 23, 2012. Australian shares slumped 1.7 percent on Monday, the biggest one-day fall in seven weeks, as investors fled from riskier assets such as equities on renewed fears that Spain may be unable to dodge a costly bailout. REUTERS/Daniel Munoz (AUSTRALIA - Tags: BUSINESS)

Sellers cease fire

 The local share market continued the ebb and flow of recent days. There was a short lived flourish at the open that saw the market with a near 37 point gain at its peak in the first half hour of the session. Buyer conviction then waned and a low for the morning was put in place when the index was up almost 7 points. A level to keep in mind in terms of support for the ASX 200 for the remainder of the week is the area around 5338, which is the low that was made in a push lower during Tuesday's trading session, prior to an improved reading on Chinese manufacturing. A move back towards this point in coming days would see caution dominate market atmospherics.

 In company news Brickworks (BKW) said that its full year profit rose almost 21 per cent. The brick and tile producer reported a net profit of $102.8 million for the year to July 31, compared to $85.2 million at the same time last year. Underlying profit which removes the impact of one-off items, rose only modestly, up just 1.2 per cent higher to $101.3 million. Sales rose 12 per cent during the year, which delivered earnings before interest and taxes of $45.1 million, an increase of more than 37 per cent. Earnings at BKW's land and development division rose almost 26 per cent to $62.4 million. The company highlighted that conditions in the building market were improving although profit margins facing headwinds due to competition and rising input prices. At lunch BKW shares were flat at $13.51.

 The ACCC has rubber stamped the takeover of Goodman Fielder (GFF). The Australian Competition and Consumer Commission will not oppose the $1.3 billion takeover by Singapore-based agribusiness Wilmar International and Hong Kong investment firm First Pacific Company. ACCC chairman Rod Sims said Wilmar and Goodman Fielder would continue to face competition in the Australian market place if the takeover went ahead. The comment referred to earlier concerns from the regulator in relation to maintaining fair markets for products such as vegetable oils in the domestic space. The transaction still requires regulatory approval from China. Goodman Fielder had expected to convene a shareholders meeting in November to approve the takeover, although it has been delayed until early next year due to delays in getting the go-ahead from Chinese authorities. GFF shares were up by 0.8 per cent at lunchtime.

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