Australian Stock Market Report – Midday 3-19-13

MID-SESSION UPDATE
(12.30pm AEDT)

The Australian share market is making an impressive rebound in early trade, following yesterday's 2% drop which was sparked by Eurozone worries.

European markets fell overnight on worries the proposed tax on bank deposits in Cyprus could pose risks for banks more generally across Europe. Cypriot banks will be closed until Thursday while a vote is held on the controversial bank levy plan.

US markets fell into the red on open but managed to close off their lows as investors turned their attention back to local corporate and economic data.

Locally, banking stocks are making a rebound after falling sharply yesterday. Shares in Westpac (WBC) are firmer by 1.3% while the Commonwealth Bank is back above $70 a share, at $70.06.

Mining stocks are also faring better, after falls during yesterday's trade.

Sundance Resources (SDL) has been placed in a trading halt, after plunging 7% in the early session to 21c. SDL has told the market it has held talks with parties including Glencore International (GLEN.LN) about the sale of a stake in its flagship Mbalam iron ore project. The talks are believed to be taking place amid worries that China's Hanlong Mining may fail to complete it $1.38 billion takeover of SDL.

The Australian dollar has had a good session and at lunchtime in the East is worth US104.01, €80.26c and £0.6886.

So far, a total of 948 million shares have changed hands, worth $1.9 billion. 475 are up, 300 are down and 300 are unchanged.

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