(IBTimes) - Lunchtime REPORT
(1pm AEST)
The Australian share market ended a little lower yesterday,
despite a positive start to the session. The ASX 200 Index (XJO)
fell 8 points to 4,157 points.
Overnight, European shares fell to five month lows on as
investor concerns still mounted about the potential for a
euro-zone break up. Reports of a run on deposits at the Spanish
banks, especially Bankia, after news the Ratings agency Moody´s
cuts the credit ratings of 16 Spanish banks. US markets also
lower of weak manufacturing data out of the Philadelphia region
and European market concerns.
Today the market here in Australia started lower with weakness
in all areas except gold stocks. The Australian stock exchange´s
leading index, The All Ordinaries Index (XAO) fell over 70 points
at the open of trade. Key overseas exchanges listed large slides
in commodity prices over the last 24 hours with our mining,
energy and banking sectors were hit hard at the start of trade,
with falls in all Asian markets.
By lunch time the markets had turned into the red and All
Ordinaries Index (XAO) had lost 71 points to 4,137 points, but
since the open of trade the index had fallen by over 100
points.
Commodity prices continued to slide in overnight trade,
Benchmark crude oil prices fell in response to
weaker-than-expected US economic data and fears of a euro-zone
break up. US NYMEX crude fell by US$0.25 to US$92.56 a barrel
overnight, and in early Asian trade the US$ oil price traded
sideways to hold at US$93.52 a barrel. Our big name energy
players were mixed, with Woodside Petroleum Limited (WPL) gave
back 2.27% to $31.02 and Origin Energy Limited (ORG) down 1.1% at
$12.76 and Oil Search Limited (OST) giving back over 2.6% to
$6.57.
The gold price turned the corner in overnight trade after
strong buying from Asian and European investors. Gold rebounded
off a 10 month low earlier in the week to end up US$38 an ounce
in overnight trade and now hold at US$1,575 an ounce. News out
from the World Gold Council (WGC) that Chinese demand for gold
hit a record in the first quarter of 2012, thanks to high demand
for jewellery and gold as an investment. Newcrest Mining Limited
(NCM) added 5.47% to $25.43, while Western Australian based gold
miner, Regis Resources Limited (RRL) increased by 0.13% to $3.71
and St Barbara Limited (
SBM
) up 5.6% to $1.96. AngloGold Ashanti Limited (
AGG
) added another 2.2% to $6.47. But Pan Australia Limited (PNA)
lower in a positive gold market after the company updated
investors today on its plans to pay its first interim dividend in
the second half of the year as it wraps up a two-year, A$450
million capital expenditure program. Even with the news that Pan
was going to pay a dividend and was looking at greater production
growth at its major mines in Laos, shares fell in morning trade
to $2.72 off 1.09%.
Base metals on the London Metals Exchange (LME) closed lower,
and the S&P/ASX 200 Materials sector fell dramatically in
early trade off 2.13% by lunchtime. Rio Tinto Limited's (
RIO
) share price off 3.7% to $55.99. The world's biggest miner, BHP
Billiton Limited (
BHP
) was lower by 2.9% to $31.82 and Fortescue Metals Group (FMG)
made back 6.5% of yesterday's losses to $4.59.
The banking sector, the S&P/ASX 200 Financials sector was
once again lower down over 1.92% in early trade. Commonwealth
Bank of Australia's (
CBA
) share price fell 2.27% to $49.86. Westpac Banking Corporation
(WBC), off 2.2% to $21.18. National Australia Bank Limited's
(NAB) down near 2% to $23.86. Australia and New Zealand Banking
Group Limited (ANZ) now off 2% to $21.14, while key insurers and
regional banks continued to fall with QBE Insurance Group Limited
(QBE) off by 3.1% to $12.47.
Toll Holdings Limited (TOL) lost more ground in early trade
today, TOLL's share price fell another 1.13% to $4.36. While
Asciano Limited (AIO) one of the better performers flat in early
trade at $4.55 and Qantas Airways Limited (QAN) off 2.36% and
Virgin Australia Holdings Limited (VAH) flat at $0.42
Elsewhere, Westfield Group's (WDC) share price fell by another
1% to $9.18.5. Telstra Corporation Limited (TLS) fell in morning
trade off 0.28% to $3.57, while Energy retailer AGL Energy
Limited (AGK) lost 0.67%.
The Australian dollar (AUD) was still below parity with the US
dollar .The AUD is currently at US$ 0.9858, the Aussie also lower
against the Euro now at €77.77cents.
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Original Source:
http://www.ibtimes.com/articles/342512/20120517/australian-stock-market-report-midday-5-18.htm
For more information, go to
www.ibtimes.com