daytrades june 28 afternoon, page-27

Australian stocks higher at noon

Australian stocks were higher at noon, led by strong performances by the healthcare and information technology sectors and supported by rises among the nation's big miners and banks.

At 1210 AEST, the benchmark S&P/ASX200 index was up 20.4 points, or 0.46 per cent, at 4,482.2 points, while the broader All Ordinaries index had risen 18.8 points, or 0.42 per cent, to 4,532.6 points.

On the ASX 24, the September share price index futures contract was up 26 points at 4,468 points, with 17,505 contracts traded.

The local market opened 0.8 per cent higher, off the back of a positive night on Wall Street where stocks snapped a three-day losing run.

But the market gave back some of those gains in morning trade, with little local news to influence its direction, with weak turnover and a lack of confidence among market players.

"There was a knee-jerk reaction from the market following on from America's strength overnight," said EL&C Baillieu Stockbroking director, Richard Morrow.

"There are very little new influences on the market, apart from a bit of book-squaring and short covering."

The best-performing sector at noon was Healthcare, up 1.91 per cent, and information technology, which was 1.06 per cent firmer, according to IRESS data.

Financial stocks were up 0.69 per cent, and the big miners also were in positive territory.

BHP had climbed 36 cents to $42.56, while Rio was 44 cents stronger at $80.24.

Mr Morrow said the next available catalyst to spark interest in the sharemarket would be the August earnings season, which would help confirm what "every broker in Australia is saying, that the equity market is dramatically underpriced".

"I think that these quiet market conditions are going to be endemic until mid-August," Mr Morrow said.

Companies with a large proportion of US dollar-denominated earnings, such as CSL, BHP, Cochlear, Rio, News Corp and Newcrest, were doing well on Tuesday, after the Australian dollar fell below 105 US cents during the overnight session, Mr Morrow said.

"But it is more short covering than anything else," Mr Morrow said.

National turnover was 893.5 million securities worth $1.85 billion, with 510 stocks up, 419 down and 438 unchanged.



Source:
http://www.thebull.com.au/articles/a/20804-aust-stocks-higher-at-noon.html