(IBTimes) - Lunchtime REPORT
(1.15pm AEST)
Friday our market had what many would call a "shocker" we had
widespread selling as losses continued throughout the day by the
close the All Ordinaries Index (XAO) has slumped by 110 points to
4,098 points. By the close the ASX had wiped out all of its 2012
gains, listing the worst weekly performance (down 5.6% this week)
since September 2011.
European shares closed at new 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. And talk that we could see short
selling of financial stocks once again banned by European
regulators over the next few weeks. Short selling bans have not
occurred since the Global Financial Crisis (GFC) ended. In the US
markets also lower as European market concerns took over from the
market enthusiasm from the Facebook (FB.N)launch on the
NASDAQ.
Over the weekend the Leaders of the major Group of Eight
nations (G8) indicated their desire for Greece to remain in the
euro zone and agreed to supported greater economic
flexibility.
On Sunday, the Chinese premier, Wen Jiabao, stating he would
look at new ways of supporting growth on to help boost China's
weakening economy.
While new concerns are building about Italy's ability to meet
its new budget requirements after Northern Italy was hit by a
magnitude 6 earthquake on the weekend.
Today the market here in Australia started stronger as
investors bought back into banking, key mining and gold stocks.
The Australian stock exchange´s leading index, The All Ordinaries
Index (XAO) climbed 15 points at the open of trade and added over
25 points before starting to lose momentum into the afternoon
trading session. By lunch time the markets had turned into the
red and All Ordinaries Index (XAO) was only up 6 points to 4,105
points.
Most commodity prices regained ground on Friday night, with
gold and base metals prices rising. The gold price was
continually boosted by strong buying from Asian and European
investors. Gold rebounded off a 10 month low last week and is now
holding at US$1,594 an ounce. Gold is now seen as a strong
defence against weakness in the euro and concerns over a slowdown
in global growth. Newcrest Mining Limited (NCM) added 0.88% to
$25.25, while Western Australian based gold miner, Regis
Resources Limited (RRL) increased by 4.14% to $3.77 and St
Barbara Limited (
SBM
) up 1.3% to $1.93. Alacer Gold Corporation (AQG) added 6.98% to
$6.13.
Base metals on the London Metals Exchange (LME) closed
slightly higher, and the S&P/ASX 200 Materials sector traded
higher up 0.75% by lunchtime. Rio Tinto Limited's (
RIO
) share price added 1% to $55.77. The world's biggest miner, BHP
Billiton Limited (
BHP
) was higher by 1.2% to $31.84, while Fortescue Metals Group
(FMG) lost over 1.5% to $4.59 as uncertainty still grows over
Chinese iron ore and coal demand in the next quarter. Sims Metal
Management Limited (SGM) off 1.7% and Mount Gibson Iron Limited
(MGX) off 2.75% to $0.88cents.
Other stocks to watch today, Building-materials supplier James
Hardie Industries SE (
JHX
) added 1.4% in early trade by lunch the share price had fallen
back by 0.64% even with its better than expected operating profit
US$32.1 million off 4% in the fourth quarter, with full year
operating Profit up 20% to $140.4 million. Hardies also told the
market sales in the fourth quarter rose 7% to US$309.3 million.
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 continued to lose ground in morning
trade and now is holding at US$91.88 a barrel. Our big name
energy players were mixed, with Woodside Petroleum Limited (WPL)
gave back another 0.5% to $30.90 and Origin Energy Limited (ORG)
down 1.49% at $12.53 and Oil Search Limited (OST) giving back
over 0.8% to $6.58.
The banking sector, the S&P/ASX 200 Financials sector
rebounded from Friday's lows up 0.4% in early trade. Commonwealth
Bank of Australia's (CBA, was the weakest of the big 4 banks in
early trade, only up 0.2% to $49.51. Westpac Banking Corporation
(
WBC
) added 1.13% to $20.64. National Australia Bank Limited's (NAB)
up just over 1% to $23.57. Australia and New Zealand Banking
Group Limited (ANZ) now up 0.5 % to $20.95, while key insurers
and regional banks continued to fall with QBE Insurance Group
Limited (QBE) off by 1% to $12.33 and Suncorp Group Limited (SUN)
off 1.4% to $7.63.
Toll Holdings Limited (TOL) one of the poorer performers on
the exchange last week saw its share price fall another 0.7% to
$4.27. While Asciano Limited (AIO) was off 0.2% in early trade to
$4.52 and Qantas Airways Limited (QAN) flat at $1.43, and Virgin
Australia Holdings Limited (VAH) also flat at $0.42 a share.
Elsewhere, Telstra Corporation Limited (TLS) higher in morning
trade at 0.28% to $3.53, while Energy retailer AGL Energy Limited
(AGK) lost 0.14%.
The Australian dollar (AUD) was still below parity with the US
dollar .The AUD is currently at US$ 0.9858, the Aussie also lower
against the Euro now at €77.04cents.
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Original Source:
http://www.ibtimes.com/articles/343366/20120521/australian-stock-market-report-midday-5-21.htm
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