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Aquila Resources Limited (AQA) said Baosteel’s proposed $285 million investment in the company had been given the green light by the Foreign Investment Review Board (FIRB). Baosteel’s stake would be for 15%, however they retain the option to increase that stake to 19.99%.

The placement to Baosteel, a Chinese steelmaker, was still subject to approval by the shareholders of Aquila and Chinese regulatory approval.

Aquila shares were halted at $7.18.

The Australian share market rallied at the end of a difficult week for investors. Better than expected GDP figures out of the US spurred global metal and equity markets to strong gains.

It has become widely accepted that the Reserve Bank will lift interest rates for the second successive month next Tuesday. The big question is by how much, with the majority of analysts forecasting a 25 basis point hike with others pointing a rise of 50 basis points.  

Meanwhile in economic news, the RBA said that credit to the private sector fell 0.2% in September 2009. For the year credit rose 1.7%. 

The main drag on the figures was a continuing decline in business credit, down 1.3% in September, which offset a 0.7% increase in housing credit. Housing credit over the year rose a solid 7.7%.

At the end of the day, the All Ords rose 71.7 to 4,646.9, while the ASX/200 added 68.5 to 4,643.2. Over 3 billion shares worth around $7.9 billion had changed hands.

The Materials and Resources sector climbed 1.8%.

BHP Billiton added 32c to $37.45, while Rio Tinto spiked $2.80 to $63.78.

In London overnight BHP said that it would look to joint venture possibilities in the coming year, rather than takeover opportunities.

Base metals surged in London last night including a 6.2% gain in the price of lead.

Steelmaker Bluescope added 10c to $3.02, while iron ore producer Fortescue surged 14c, or 3.8% to $3.85.

Lihir Gold rose 7c to $3.05, while copper and gold miner OZ Minerals climbed 6.7% to $1.20.

Junior iron ore miner Gindalbie Metals spiked 5.5c to 88.5c as final approval for a new West Australian mine was given.

Energy stocks were 1.6% stronger. Woodside put on $1.01 to $47.70 and Santos rose 20c to $15.10.

Origin added 40c to $16.07 as it reaffirmed its full-year profit guidance of 15% growth.

Aquila’s shares remained halted throughout the day at $7.18 before it was announced that the FIRB had approved China’s Baosteel Group’s proposed $285 million investment in the coal and iron ore producer. The investment will result in Baosteel owning a 15% stake in Aquila.

The major banks all made ground. NAB rallied 80c to $29.85, while CBA gained 80c to $52.25.

The broader Banks and Financials sector climbed 1.9%.

Macquarie Group added 75c to $50.00. The investment bank reported a first half profit of $479 million, down 79% from the previous corresponding period. It is expecting a similar result for the second half.

All the insurers made ground with Suncorp-Metway and QBE the best performers having jumped 2.9% each.

Property Trusts surged. The sector slumped 4.4% yesterday but regained 3.7% on Friday.

Goodman Group surged 10.7% to 62c, while Mirvac, Dexus and Stockland were more than 6% higher.

Heavyweight Westfield gained 16c, or 1.3% to $12.27.

Consumer Staples were 0.1% above the line following a mixed day from the majors.

Woolworth’s dipped 2c to $28.63, while Wesfarmers put on 14c to $28.09.

Goodman Fielder shed 6c to $1.61. 

The Consumer Discretionary sector was up 0.6%. The retailers were mixed, with Harvey Norman down 3c to $3.99 after going ex-div today.

David Jones fell 13c to $5.36 after rival Myer announced yesterday that its float price would be $4.10 – at the lower end of expectations.

Gamer Aristocrat rallied 3.9% to $4.52, while media company Fairfax rose 1.9% to $1.61.

Industrials were 2.5% higher. Macquarie Airports added 3.6%, while fellow Macquarie satellite, Macquarie Infrastructure put on 8c, or 5.9% to $1.445 after announcing it would split its portfolio of toll-roads between two new separately listed companies.

Qantas gained 8c to $2.80 and Leightons rose $1.05, or 3% to $36.00.

Telstra added 1c to $3.32 with the broader Telecommunications sector up by 0.1%.

Among Healthcare stocks, CSL slumped 40c to $31.50, while Sonic Healthcare shed 23c to $14.02.

The sector lost 1%.

Around the region, the Nikkei 225 rose 142.7 to 10,033.8. Across the Tasman, the NZSE50 added 20.0 to 3,215.6. The Straits Times Index added 38.4 to 2,670.7, while the Hang Seng climbed 636.2 to 21,901.1.

Spot gold was trading at US$1048.07 per ounce, and the Aussie was buying US$0.9163. 

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Origin reaffirms guidance
Origin Energy reaffirmed its profit guidance for FY10. The company said based on performance for the first quarter and current economic conditions prevailing, it expects the underlying profit for year to be around 15% higher than the prior year.

At the end of the day, Origin shares were up 40c to $16.07.

Macquarie 1H profit down 21% to $479m
Macquarie Group posted a $479m net profit for the six months to 30 September, up 79% from the prior six months. The investment bank foreshadowed that it was expecting a similar result for the second half of the year.

By the finish, Macquarie shares were trading up 75 to $50.00.

Sims profit down 77% on a year ago
Sims Metal Management reported a 77% drop in profit in the September quarter versus the previous corresponding period. The metal recycler said profit for the quarter totalled $33.3 million, which was on the back of a 49% fall in revenue to $1.8 billion in the same period.

At the close, Sims shares were trading down 38c $19.82.

AWE lowers production guidance
Australian Worldwide Exploration lowered its production guidance for FY10 from 7m barrels of oil equivalent to 6.5m BOE due to recent adverse weather at Tui and the planned extended shutdown at BassGas. The company also reported revenue of $109 million for the September quarter, up 25% on the previous quarter.

At the close, AWE shares were up 2c to $2.61

Gindalbie given green light for mine
Gindalbie Metals said that the Commonwealth Government had given environmental approval for the Karara Iron Ore project in Western Australia. This represents the final regulatory approval required by the miner and as a result construction would begin next week, the company said.

By the end of the day, Gindalbie Metals shares were up 5.5c to 88.5c. 

IAG reaffirms FY guidance
Insurance Australia Group expects to deliver an insurance margin towards the upper end of its 9–11% guidance for FY10 if the operating conditions experienced in the first quarter continue. Managing director and CEO, Michael Wilkins, said he was pleased with the group’s progress to date.

At the final whistle, IAG shares were trading up 8c to $3.78.

Sky City on track
Sky City Entertainment Group said it was on target to deliver double-digit NPAT growth in the current financial year based on first quarter results. However, the gamer said it would be challenging in the current economic environments, both in Australia and New Zealand.

At the end of the day, Sky City shares were up 7c to $2.76.

Macquarie Infrastructure aims to split
The board of Macquarie Infrastructure Group said that it would split into two separate entities and divide the current assets amongst the two new companies. The board of the toll-road operator said that, following the split, there would be $226 million in surplus cash, which would entitle shareholders to a special distribution of 10c per security.

By the finish, MIG shares were trading up 8c to $1.445.

Aquila Resources Limited (AQA) announced that its Avontuur Manganese Project has been successful in the Long Term Manganese Export Allocation Process to qualify participants for the Manganese Industry Forum to be established by Transnet Limited. The company anticipates the forum would determine the quantum of and process for export rail and port capacity expansion for manganese ores from the Kalahari Region in South Africa, with an execution plan to allow new production to reach markets from 2013.

Whitehaven Coal Limited (WHC) said it has entered into a new banking facility with ANZ and Macquarie Bank Limited to replace existing facilities which are currently being wound down. The company said the new facility is for a three-year term and comprises bank guarantees totalling $80 million, and banking lines for commodity and foreign exchange hedging. Whitehaven said the new facility includes a change of control provision.

Origin Energy Limited (ORG) reaffirmed its profit guidance for FY10. The company said based on performance for the first quarter and current economic conditions prevailing, it expects the underlying profit for year to be around 15% higher than the prior year.

Origin posted a profit of $530 million in FY09.

Chairman Kevin McCann said the company was in a strong financial position with access to $4.4 billion of cash and undrawn committed debt facilities, as of 30 September 2009.

“In the first quarter, operating conditions and business performance in Australia has been broadly in line with expectations,” Mr McCann said.

“In New Zealand, conditions for Contact Energy remained challenging in the first quarter as dam levels in the South Island remained high, depressing wholesale electricity prices.”

Speaking at the company’s AGM managing director Grant King also said the recent passage of the Renewable Energy Target legislation would drive significant investment in renewables technologies and that Origin has positioned itself to respond to the target with a portfolio of renewable energy supply, including wind, geothermal and solar.

Mr King also said the APLNG joint venture between Origin and ConocoPhilips is working effectively towards the development of a CSG to LNG project in Queensland.

“APLNG has secured a site for development of its LNG processing facility at Laird Point on Curtis Island in the Port of Gladstone,” he said.

“The project continues to target final investment decision by the end of 2010 with production commencing at the end of 2014.”

As at 1426 AEDT, Origin shares were up 33c to $16.00.

Better than expected GDP figures out of the US spurred global metal and equity markets to strong gains. Consumer staples, healthcare and the telecommunications sector, which performed strongly this week, were sold as investors returned to the blue chip financials and miners.

At midday, the All Ords rose 59.8 to 4,635, while the ASX/200 added 57.7 to 4,632.4. Over 1.4 billion shares worth around $4.1 billion had changed hands.

The Materials and Resources sector climbed 1.5%.

BHP Billiton added 44c to $37.57, while Rio Tinto spiked $2.62 to $63.60 as they followed their UK counterparts higher.

In London overnight BHP said that it would look to joint venture possibilities in the coming year, rather than takeover opportunities.

Base metals surged in London last night including a 6.2% gain in the price of lead.

Bluescope added 9c to $3.01, while rival Onesteel put on 5c to $3.15.

Newcrest and Lihir Gold rose 41c to $32.87 and 7c to $3.05 respectively.

Fortescue surged 15c, or 4% to $3.86.

Junior iron ore miner Gindalbie Metals spiked 4.5c to 87.5c as final approval for a new West Australian mine was given.

Energy stocks were 1.3% stronger. Woodside climbed 96c to $47.65.

Origin added 20c to $15.87, while Santos tacked 30c, or 2% to $15.19.

The coal miners were mostly flat, with the exception of Whitehaven Coal which added 8c to $3.86.

The major banks all made ground Friday. CBA rallied $1.18 to $52.63, while NAB tacked on 67c to $29.72.

The broader Banks and Financials sector climbed 1.9%.

Macquarie Group added 81c to just over $50 per share. The bank reported a first half profit of $479 million, down 79% from the previous corresponding period. It is expecting a similar result for the second half.

All the insurers made ground with the exception of AXA Asia Pacific which was 4c, or $4.21 below the line.

Property Trusts surged. The sector slumped 4.4% yesterday but made back 3.8% this morning.

Dexus and Goodman Group were more than 7% higher, while Stockland added over 5%.

Heavyweight Westfield rallied 41c, or 3.4% to $12.52.

Consumer Staples were 0.3% down, with little movement from the major players.

Woolworth’s added 6c to $28.71, while Wesfarmers eked out an 8c gain to $28.03.

Coca-Cola Amatil fell 5c to $10.46.

The Consumer Discretionary sector was up 0.6%. The retailers were mixed, with Harvey Norman up 8c, or 2% to $4.10 after going ex-div today.

David Jones fell 6c to $5.43 after rival Myer announced yesterday that its float price would be $4.10 – at the lower end of expectations.

Crown added 15c to $8.25.

Industrials were 1.5% higher. Macquarie Airports added 1.1%, while fellow Macquarie satellite, Macquarie Infrastructure put on 7c, or 5.1% to $1.435 after announcing it would split its portfolio of toll-roads between two new separately listed companies.

Qantas added 7c to $2.79.

Telstra lost 1c to $3.30 with the broader Telecommunications sector off by 0.4%.

Among Healthcare stocks, CSL slumped 35c to $31.55, while Sonic Healthcare shed 18c to $14.07.

The sector lost 1.2%.

Around the region, the Nikkei 225 rose 110.9 to 10,002.0. Across the Tasman, the NZSE50 added 13.2 to 3,208.8

Spot gold was trading at US$1045.65 per ounce, and the Aussie was buying US$0.9144.   

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Macquarie 1H profit down 21% to $479mMacquarie Group posted a $479m net profit for the six months to 30 September, up 79% from the prior six months. The investment bank foreshadowed that it was expecting a similar result for the second half of the year.

At midday, Macquarie shares were trading up 79c to $50.04.

Sims profit down 77% on a year ago
Sims Metal Management reported a 77% drop in profit in the September quarter versus the previous corresponding period. The metal recycler said profit for the quarter totalled $33.3 million, which was on the back of a 49% fall in revenue to $1.8 billion in the same period.

At lunch, Sims shares were trading down 70c $19.50.

AWE lowers production guidance
Australian Worldwide Exploration lowered its production guidance for FY10 from 7m barrels of oil equivalent to 6.5m BOE due to recent adverse weather at Tui and the planned extended shutdown at BassGas. The company also reported revenue of $109 million for the September quarter, up 25% on the previous quarter.

At noon, AWE shares were up 4c to $2.63.

Gindalbie given green light for mine
Gindalbie Metals said that the Commonwealth Government had given environmental approval for the Karara Iron Ore project in Western Australia. This represents the final regulatory approval required by the miner and as a result construction would begin next week, the company said.

At lunchtime, Gindalbie Metals shares were up 4.5c to 87.5c. 

IAG reaffirms FY guidance
Insurance Australia Group expects to deliver an insurance margin towards the upper end of its 9–11% guidance for FY10 if the operating conditions experienced in the first quarter continue. Managing director and CEO, Michael Wilkins, said he was pleased with the group’s progress to date.

At midday, IAG shares were trading up 11c to $3.81.

Sky City on track
Sky City Entertainment Group said it was on target to deliver double-digit NPAT growth in the current financial year based on first quarter results. However, the gamer said it would be challenging in the current economic environments, both in Australia and New Zealand.

At lunchtime, Sky City shares were up 8c to $2.77.

Macquarie Infrastructure aims to split
The board of Macquarie Infrastructure Group said that it would split into two separate entities and divide the current assets amongst the two new companies. The board of the toll-road operator said that, following the split, there would be $226 million in surplus cash, which would entitle shareholders to a special distribution of 10c per security.

At noon, MIG shares were trading up 6.5c to $1.43.

Sky City Entertainment Group Limited (SKC) said it was on target to deliver double-digit NPAT growth in the current financial year based on first quarter results. However, the gamer said it would be challenging in the current economic environments, both in Australia and New Zealand.

Sky City delivered NPAT of $115.3 million in FY09, up 13% on the previous year.

The company reported said first quarter revenue was up 4.7% year on year.

Chief Executive, Nigel Morrison, said revenues of the Australian operations increased overall by over 7% in the quarter, however expects gaming revenue would be hit by about 15% in the second half due to the impact of the smoking bans to be introduced on 2 January 2010 in Darwin.

The company said continued challenging economic conditions in New Zealand, meant that overall revenues of the Auckland Casino were up marginally by 1.1% on the previous year, while its gaming revenues remained flat.

“Sky City Auckland’s gaming machine revenues have continued to outperform the market and gain market share against a backdrop of further softening in overall pub and club gaming machine revenues in New Zealand in 1Q10,” Sky City said.

The company added that its International Business reported turnover growth up 38% to $406m from $295m in the previous corresponding period.

Sky City said its Cinemas business delivered revenue growth of 14% over the quarter, year on year.

As at 1140 AEDT, Sky City shares were up 9c to $2.78.

Gindalbie Metals Limited (GBG) said that the Commonwealth Government had given environmental approval for the Karara Iron Ore project in Western Australia. This represents the final regulatory approval required by the miner and as a result construction would begin next week, the company said.

Gindalbie said it expected three major contracts worth over $400 million to be awarded in the coming weeks, mainly to do with the construction of the housing village, port and earthworks.

Managing director Garret Dixon said he expected 500 people to be working on site early next year, and more than 1,000 by the middle of 2010.

”Our focus now will be very much on efficient project management, costs and scheduling to ensure that we deliver a world-class iron ore project within our budgeted development timeframe, with the key objective of commencing exports of high-grade magnetite concentrate to China in 2011,” Mr Dixon said.

At 1039 AEDT, Gindalbie Metals shares were up 5.5c to 88.5c. 

Australian Worldwide Exploration Limited (AWE) lowered its production guidance for FY10 from 7 million barrels of oil equivalent to 6.5 million BOE due to recent adverse weather at Tui and the planned extended shutdown at BassGas. The company also reported revenue of $109 million for the September quarter, up 25% on the previous quarter.

AWE said the improved revenue was partly related to oil sales from inventory, within the natural cycle of oil sales from Tui and a slight improvement in the average oil price received.

The company reported a 4% fall in oil and gas production compared to the previous quarter to 1.86 million BOE.

AWE said production was marginally lower at the Tui and Cliff Head projects as a result of operational issues.

“Strong quarterly gas throughput was achieved at the BassGas, with a commensurate improvement in the level of condensate and LPG production,” the company said.

“Casino production was lower, marginally below the long term contracted rate. Oil production from the onshore Perth Basin was also lower, but gas volumes improved.”

Across the business, AWE said gas production improved marginally reaching 5.1 petajoules for the quarter, with the performance of BassGas underwriting the result.

AWE expects the weather issue that negatively impacted the Tui operation to subside as conditions improve in coming months.

The company said exploration expenditure is expected to increase over the remaining three quarters of the financial year as the offshore drilling campaign in the Bass and Taranaki Basins commences.

AWE said development expenditures would also increase as work recommences on the Henry gas project and the Yolla “Mid Life Enhancement” program in the later part of the financial year.

The company said it had a cash balance of $315 million at the end of the quarter.

As at 1037 AEDT, AWE shares were up 4c to $2.63.

Crane Group Limited (CRG) forecast a full-year profit 30% below that was recorded in FY09 based on first quarter trading and the expectation of continuing difficult market conditions. The pipeline system manufacturer and distributor of plumbing supplies said improved performances in Tradelink and Industrial Products are expected to be more than offset by tougher trading conditions in Pipelines and CDNZ, and an expected lower contribution from the Mitchell joint venture. Crane said the impact on trading would be most pronounced in the first half compared with the strong performance last year prior to the economic downturn, with profit after tax expected to be down about 50%. The company forecast cash flow for the full year to be strongly positive, with gearing at 30 June 2010 expected to reduce to 23%.

AWB Limited (AWB) said it had completed the $241 million retail component of its capital raising, with the new shares to commence trading on 2 November 2009. The company said the total raised was $459 million, including the $218 million institutional component. The company undertook the capital raising to reduce debt, strengthen the company’s balance sheet and to provide additional financial flexibility.  

The board of Macquarie Infrastructure Group (MIG) said that it would split into two separate entities and divide the current assets amongst the two new companies. The board of the toll-road operator said that, following the split, there would be $226 million in surplus cash, which would entitle shareholders to a special distribution of 10c per security.

The board said that the split would be made along risk and maturity considerations and was designed to enhance shareholder value.

One standalone entity, Mature MIG, would hold the ‘mature’ assets of the 407 ETR in Canada and Westlink M7 in Sydney.

Meanwhile, another Macquarie managed entity, Active MIG, would take control of many of the company’s US road assets, including the South Bay Expressway, which saw traffic slump 13.9% in the September quarter.

”Based on MIG’s 30 June 2009 valuations, Mature MIG would have a portfolio valuation of $3.64 billion and Active MIG would have a portfolio valuation of $1.45 billion,” the company said.

Macquarie Group would be paid a fee of $50 million for its role in doing all things necessary to implement the restructure including provision of transition services.

Ongoing management fees of MIG would come in around a minimum $20 million per year.

MIG said the restructure proposal would be subject to various regulatory and security holder approvals.

It is expected that a special general meeting would take place to consider the proposal in January/February 2010.

At the close Thursday, MIG shares were trading at $1.365.