Australian Stock Market Report – Midday 2/5/2013
By Juliette Saly, CommSec Market Analyst | February 5, 2013 1:34 PM EST
Local stocks are trading in the red at lunchtime in the East, following falls on European and US markets overnight due to political concern in Europe. The Dow Jones Index suffered a triple digit loss, after climbing above the 14,000pt level on Friday for the first time in five years.
At lunchtime in the East, the All Ordinaries Index (XAO) is down 35.1pts or 0.7pct to 4894.
Hearing implant maker Cochlear (COH) has released first half numbers today, which have failed to impress the market. Revenue rose 1pct to a record $391.7 million, while sales were up 9pct in constant currency terms. COH has swung back to profit, reporting net profit of $77.7 million, up from a $20.4 million loss in the prior corresponding period, which was due to a product recall. However the market was expecting a result between $79-81 million. COH will pay shareholders an interim dividend of $1.25 per share, 40pct franked, up 4pct on the previous period. At lunchtime in the East, COH shares are down 5.7pct to $75.84.
Macquarie Group (MQG) has forecast a 10pct rise in full year profit numbers, due in March, up from FY12 profit of $730 million. CEO Nicholas Moore says the result could be even higher if improved market conditions persist, however client activity is still subdued for capital markets facing business. The market was clearly expecting more from MQG with its share price down 3.7pct in early trade to $37.34.
Toll road operator Transurban (TCL) has reported a 7pct rise in 1H earnings to $416.9 million thanks to increased traffic on its toll roads. However 1H net profit came in at $80.9 million, down from $93.2 million in the prior period. TCL shares are up 1.2pct in the early session to $6.17.
In economic news, Australia´s services sector contracted for the 12th consecutive month in January amid slowing activity in the mining sector and soft retail sales. The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (PSI), rose 2.1 points to 45.3 in January. Any reading below 50 indicates a contraction in the sector.
Meanwhile Australia's trade deficit narrowed to $427 million in December, with imports down 6pct and exports up 3pct.
The RBA hands down its February rate decision at 2.30pm AEDT with money markets factoring in a less than one in five chance that rates will be cut from the official cash rate of 3pct.
The Aussie dollar is worth US104.46c, €77.35c and £0.6629.
[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
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Kate Middleton's Pregnancy Hearsays: Possible Evidence Revealed [PHOTOS]
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
Join the Conversation
- Fresh Leak Hints iPhone 6 Price and Release Date; 4.7-Inches iPhone 6 Sapphire Display Scratched in Test; New Spigen Cases Out
- iPhone 6 2014 Release Date Very Soon as Apple Orders 120M New iPhones from Foxconn – Report
- Google Nexus 6 on Release Date Will Sport 2K Display Panel & Lower Price Tag – Report
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- FCC Approves Sony Xperia Z3 for U.S. Market
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- Sony PlayStation 4 Outsells a Resurgent Xbox One in June