Australian Stock Market Report – Midday June 26, 2014
By Steven Daghlian, CommSec Market Analyst | June 26, 2014 1:25 PM EST
The Australian sharemarket is improving for the second time this week, with a positive lead from Wall Street helping lift local stocks. The All Ordinaries Index (XAO) is up 0.8 per cent, creeping back above the key 5400 point mark. The property trusts are the lone losers at lunch, with all other sectors recording at least modest gains.
The main indicator of the Australian Securities Exchange (bottom R) is seen in red shortly after the local market opened in Central Sydney October 4, 2011. Australian stocks eased 0.6 percent on Tuesday, pressured by falls in global equities markets in a fresh flight from riskier assets, but losses were limited after steep declines on Monday. REUTERS/Daniel Munoz (AUSTRALIA - Tags: BUSINESS)
The mining sector is up 0.8 per cent, following two straight days of weakness within the industry and a slightly firmer iron ore price. Yesterday, the Australian government's commodities forecaster downgraded its forecast for the iron ore price in 2015. Iron ore producer Paladin Energy (PDN) is surging by 8 per cent following some better signs for one of its mines in Canada. PDN shares are still down 35 per cent since the start of this calendar year however. Since Japan's Fukushima Daiichi disaster in March 2011, PDN shares have slumped by 94 per cent. The uranium price has never recovered, as a nuclear energy fell out of favour with many large consumers.
Newly formed Westfield Corp (WFD) and Scentre Group (SCG) are both firmer following the shopping centre owner's restructure yesterday. WFD shares are up 2.6 per cent while SCG is up 1.4 per cent. Property group Lend Lease (LLC) is up 1.8 per cent and announced a development deal in Malaysia worth $2.48 billion. This includes the construction of a hotel, a shopping mall and three residential buildings. The rest of the industry is struggling as many of the sector's largest companies are trading ex-dividend. This includes GPT Group, Stockland, Mirvac, Dexus, CFS Retail Trust and Australand. Purchasing shares in any of these companies today onwards will not make you eligible to receive their next distributions.
At lunch, 897.7 million shares have changed hands worth $1.77 billion. 533 stocks are higher, 288 are in the red and 399 are unchanged.
The Australian dollar buys US94c; a full US25c firmer than a decade ago against the greenback
Tonight, is expected to be quiet on the economic front, with the focus on personal income/spending numbers in the U.S. together with the results of a weekly report measuring the number of Americans filing for unemployment benefits in the previous week.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- El Pollo Loco Shareprice Up 33% on 1st Day of Trading
- South Australia OKs $800M Copper, Gold & Iron Ore Mine on Prime Agri Land in Yorke Peninsula
- Long Beach Real Estate Market Is Pricing Out Home Buyers with Limited Budget
- 93% of Mining Leaders See Extremely Low or Zero Growth Prospect for Industry in Next 1-2 Years; No Immediate Plans by BHP for Olympic Dam Expansion
- Australian Stock Market Report –Midday July 30, 2014
- Transfer News: Ron Vlaar to Consider Villa Exit, May Move to Tottenham
- AS Roma's Seydou Keita Throws Water Bottle at Real Madrid defender Pepe for Spitting [VIDEO]
- The Mentalist Season 7 Spoilers: CBS Skips Simon Baker's Patrick Jane in Fall Schedule, Josie Loren Joins Cast
- Game of Thrones Season 5 Update: Maisie Williams Talks Arya Stark, Lady Stoneheart, and Surprises
- Transfer News: FC Barcelona, Man Utd to Compete for Juan Cuadrado's Signature as Fiorentina Reveal Willingness to Sell