day trade diaries may 25 part 2, page-2

(Straight from commsec)

MARKET REPORT

LUNCHTIME REPORT
(11.40am AEST)

The Australian share market is slightly firmer today, thanks to strong gains made in the materials and energy sectors on the back of firmer commodity prices. The All Ordinaries Index (XAO) is up 10pts or 0.3pct in the first two hours of trade to 3765.

The financial sector however is dragging, down 1pct, after the Securities and Investments Commission (ASIC) today lifted the eight month ban on the short-selling of financial stocks. The ban has been in place since the 21st September 2008, following the collapse of US investment firm Lehman Brothers, and was designed to act as a circuit breaker and restore confidence in the market. The ban has been extended twice, in November and again in January. ASIC says it will be keeping a close eye on short-sellers in the market and is willing to reinstate the ban if trading becomes too volatile. Shares in the Commonwealth Bank (CBA) are faring worst today, down 1pct to $35.18 while Macquarie Group (MQG) is weaker by 4.2pct to $32.09.

The materials sector has gained 1.7pct on the back of strong gains on the London Metals Exchange. BHP Billiton (BHP) has added 1.4pct to $33.94 while Rio Tinto (RIO) is firmer by 2.4pct to $65.98.

The energy sector is up 1.5pct on a firmer oil price.

Elsewhere, CSL Limited (CSL) is dragging down the healthcare sector, on reports the US. Federal Trade Commission is likely to block its US$3.1 billion takeover of American rival Talecris Biotherapeutics Incorporated. CSL may now be forced to undergo a capital raising to balance its books. At lunchtime CSL shares are down 2.3pct to $8.40.

The Australian dollar is buying US78.13c.

Juliette Saly
CommSec Market Analyst