Aust stocks see-saw as earnings flood in

The Australian stock market opened marginally higher on Thursday, with a string of negative company profit results dragging the market down.

At 10.15am AEST (12.15pm NZT), the benchmark S&P/ASX200 index was up 3.4 points, or 0.08 per cent, at 4,478.3, while the broader All Ordinaries index had risen 4.6 points, or 0.1 per cent, at 4,508.5.

On the Sydney Futures Exchange, the September share price index contract was nine points lower at 4,455, on volume of 5,532 contracts.

Stocks on Wall Street made modest gains on Wednesday following positive earnings reports from retailers during the week. The Dow rose 9.69, or 0.1 per cent, to 10,415.54, while the Standard & Poor's 500 index rose 1.62, or 0.2 per cent, to 1,094.16, and the Nasdaq composite index rose 6.26, or 0.3 per cent, to 2,215.70.    

Profit reports from local companies, as well as market reactions, were mixed on Thursday.

Shares in AMP fell 23 cents, or 4.32 per cent, at A$5.09, after the wealth manager and life insurer posted first-half profit up 17 per cent but said it was cautious about the global economic outlook and expected ongoing market volatility.

QBE Insurance reported lower first-half profit fall by 39 per cent as Australia's biggest insurance company was hit by substantially lower investment income from cash and fixed income investments.

Its share price was up 28 cents at A$17.20.

Major bank stocks were mixed with Commonwealth down two cents at A$50.63, ANZ down four cents at A$22.50, Westpac down four cents at A$23.01 but a slight gain for National Australia Bank, up six cents at A$24.37.

RBS Morgans private client adviser Craig Walker said profit results released on Thursday had been mixed.

"The QBE result seems to have been received fairly well," Mr Walker said.

"The one which has probably disappointed the market the most to date is AMP, with their shares off four per cent.

"They did report a profit, but it was below what the market was expecting, hence the sell-off, and I guess also their outlook statement as well wasn't all that positive."

Losses by BHP Billiton shares were continuing on Thursday, Mr Walker said.

BHP shares fell over four per cent on Wednesday after the mining giant confirmed it is seeking to take over the world's biggest fertiliser maker.

BHP shares were 46 cents lower again, by 1.2 per cent, at A$37.96.

Fellow mining giant Rio Tinto was down 44 cents at A$73.01 and Fortescue Metals had dropped one cent at A$4.67.

Shares in engineering company Downer EDI slipped 12 cents, or 2.54 per cent, at A$4.61, after it reported a 98 per cent drop in net profit in fiscal 2010.

PaperlinX shares fell 2.5 cents, or 3.79 per cent, at 63.5 cents, after the stationer posted an annual net loss.

Pallets supplier and information management company Brambles reported a lower full year profit, but said it was well placed to grow in fiscal 2011.

Brambles shares were up 19 cents, or 3.58 per cent, at A$5.49.

The spot price of gold in Sydney at 10.49am AEST was US$1,229.00 per fine ounce, up US$5.59 on Wednesday's closing price of US$1,223.41.

Newcrest Mining shares were 57 cents higher at A$35.58 and Lihir Gold was up five cents at A$4.41.

The top traded stock by volume at 10.53am AEST was Telstra with 31.2 million shares changing hands for A$92.81 million.

Telstra shares were up two cents at A$2.98.

National turnover reached 535.1 million shares, worth A$1.5 billion, with 380 stocks trading up, 292 down and 325 unchanged.

- AAP