Stocks to watch on the Australian stock exchange early on Thursday:

BLD – BORAL LTD – down six cents at $3.99

Building materials maker Boral has sold its Indonesian business for $US135 million ($A127.87 million) and confirmed its previous expectations for its half-year profit.

ERA – ENERGY RESOURCES OF AUSTRALIA LTD – down 21 cents at $1.33

Energy Resources Australia has posted a $153.6 million loss for 2011 and says production is still being hampered by wet weather.

FXJ – FAIRFAX MEDIA LTD – up 7.5 cents at 81.5 cents

Market analysts speculate Australia’s richest person Gina Rinehart has increased her stake in Fairfax to 10 per cent.

Two large parcels totalling 120 million shares were bought before the market opened for 81.77 cents, a 10 per cent premium on Tuesday’s closing price of 74 cents.

QAN – QANTAS AIRWAYS LTD – down 1.5 cents at $1.56

Qantas says it is in a strong financial position despite having its credit rating downgraded by Moody’s ratings agency.

STO – SANTOS LTD – down 14 cents at $13.32

Santos Ltd’s Wortel operation in Indonesia has produced its first gas, the fourth project in the company’s base business to begin output in the past eight months.