(IBTimes) - Lunchtime REPORT
(12.30pm AEST)
Yesterday was another down day for the Australian share
market, with widespread selling in all sectors apart from the
utilities, the All Ordinaries Index (XAO) ended off 101 points to
4,214 points.
Overnight the European markets finished slightly lower, as
Greek political concerns and news that the Greeks will be heading
back to the polls on the 17th June was confirmed overnight. More
concerns about the stability of the Greek banking system rocked
markets after news that Greek banks has seen the European central
Bank (ECB) cut access to funds and the president of the ECB,
Mario Draghi, admitting it is possible that Greece could exit the
euro.
The US markets held up well more most of the day, thanks to
better than expected factory output, industrial production
numbers, and housing data. But in the last 2 hours of trade were
hit by the ECB loan news and news that the minutes of the April
Federal reserve meeting, the US central Bank, showed several
members feel that the economy is in need of more stimulus rattled
markets.
The Australian stock exchange´s leading index, the All
Ordinaries Index (XAO), lifted 17 points at the open of trade.
Even with large slides in commodity prices and overseas index's
over the last 24 hours, our material and energy sectors started
to regain lost ground.
Our market was initially boosted by the news that the Japanese
economy, expanded at a faster pace than expected up 1% over the
first quarter of 2012 and on an annual basis the economy grow at
4%. Japan is Australia's 2nd largest 2 way trading partner,
accounting for 12.3% of all goods and services. Today's result
surprised the market as Japan still in recovery from its natural
and nuclear disasters in 2011.
By lunch time the markets had turned into the red and All
Ordinaries Index (XAO) had lost 21 points or 0.5% to 4,193
points.
Commodity prices continued to slide in overnight trade, in
early Asian trade the US dollar oil price made back a little
ground to US$93.20 a barrel. Our big name miners were mixed, with
Woodside Petroleum Limited (WPL) gave back $0.05 or 0.16% to
$31.67 and Origin Energy Limited (ORG) flat at $12.93 and Oil
Search Limited (OST) up over 1.1% to $6.79. Coal and uranium
stocks also listing small gains in early trade with Paladin
Energy Limited (
PDN
) adding 3.4% and Whitehaven Coal Limited (WHC) up 0.9% to
$4.34.
The gold price also moved slightly higher after hitting a 10
month low overnight, in electronic trade, it hit US$1,549 an
ounce, Newcrest Mining Limited (NCM) added 1.3% to $24.14, while
Western Australian based gold miner, Regis Resources Limited
(RRL) increased by 5.8% to $3.59 and AngloGold Ashanti Limited (
AGG
) up 3.1% to $6.32.
Base metals on the London Metals Exchange (LME) closed lower,
but that did not stop the S&P/ASX 200 Materials sector from
recovering by 0.64% by lunchtime. Rio Tinto Limited's (
RIO
) share price gained 3.4% to $58.19. The world's biggest miner,
BHP Billiton Limited (
BHP
) was higher by 0.65% to $32.70 and Fortescue Metals Group (FMG)
made back 1.24% of yesterday's losses to $4.90.
Building materials and aluminium supplier, CSR Limited (CSR)
released its 2012 full year results to the end of March 2012
yesterday and today the shares continued to lose ground. CSR
shares traded lower as the morning moved on to hit $1.64 off
1.2%.
Today Adelaide Brighton (
ABC
) supplier of cement and lime to the construction industry, held
its Annual General Meeting (AGM). Adelaide management reconfirmed
its plans to investment in integrated concrete and aggregates
(building soils and rock materials) operations and continue to
grow its lime business. Adelaide also said it expects the carbon
tax to impact its 2012 Net Profit after Tax (NPAT) by $2.7
million before mitigation. ABC's share price fell 0.34% to
$2.90.
The banking sector, the S&P/ASX 200 Financials sector was
once again lower down over 1.25% in early trade. Commonwealth
Bank of Australia (CBA) today released its quarterly banking
update. The banks "unaudited" numbers were slightly below market
expectations with a Statutory Net Profit (NP) of $1.7 billion.
Also reporting a 3% rise in cash profit over the quarter. Chief
executive (CEO) Ian Narev said " the outlook for financial
markets remains uncertain and the bank is continuing to tighten
its costs and focus on sourcing local, more secure funding.CBA´s
share price fell 2.18% to $50.66. Westpac Banking Corporation
(WBC), off 2.2% to $21.18. National Australia Bank Limited's
(NAB) down near 1% to $24.41. Australia and New Zealand Banking
Group Limited (ANZ) was off 1.2% to $21.35. Key insurers and
regional banks also lost ground with QBE Insurance Group Limited
(QBE) off by 0.6% to $12.95.
Industrial stocks were still in focus as the lower US oil
price and the recent slide in the Australian dollar help to
improve prospects for many of the transport and service firms.
Toll Holdings Limited (TOL) lost more ground in early trade today
after it cut its expected earnings outlook yesterday. Toll shares
were the most highly traded shares on the XAO yesterday and today
trading volumes are still strong with TOLL's share price falling
another 7.29% to $4.38. While Asciano Limited (AIO) fell another
0.4% to $4.55 and Qantas Airways Limited (QAN) unchanged and
Virgin Australia Holdings Limited (VAH) off 0.6%.
Elsewhere, The Westfield Group's (WDC) share price fell by
another 0.33% to $9.19. Telstra Corporation Limited (TLS) gave
back ground this morning falling 1.38% to $3.58, while Energy
retailer AGL Energy Limited (AGK) lost 0.4% to $14.88.
The Australian dollar (AUD) was still below parity with the US
dollar continuing its strong hold on the currency markets. The
AUD is currently traded as low at $0.9872 overnight and from
there bounced back and now has settled at US$ 0.9940, while the
Aussie has gained a little against the Euro now at €78.03
cents.
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