Midday Market Analysis: Treading Water
Despite the modest gains most sectors are stronger, with IT, energy, and healthcare stocks the best performers.
In company news, BHP announced its 1H FY12 results which revealed a net profit of US$9.9 billion, down 5.5% compared to the previous corresponding period and slightly below analyst expectations.
The results were weaker despite a revenue lift of 9.7%, to US$37.48 billion, and record production for iron ore and natural gas.
BHP said in a statement that 1H FY12 had been a challenge, with global economic growth reflecting continuing difficulties in Europe and slowing activity in China and India.
Elsewhere, Gunns (GNS) has been up as much as 100% today after announcing a planned capital raising of $280 million, with $150 million of that being allocated to NZ born billionaire Richard Chandler.
Around the region, Asian markets are all trading higher; the Hang Seng is up 0.6% whilst the Nikkei is 0.7% stronger.