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Local shares maintained momentum in the afternoon to finish 1.9% higher and come close to recovering the week’s losses. Once again, a strong result from Wall Street was the catalyst for the rally, with strong gains from the miners and financials.

In its quarterly statement on monetary policy, the Reserve Bank increased its forecast for economic growth in 2010. The RBA suggested more interest rate hikes are likely.

In economic news, according to the Australian Industry Group-Housing Industry Association construction performance increased 0.1 points to 50.9 index points in October.

At the end of the day, the All Ords had rallied 85.2 to 4,604.4, while the ASX/200 put on 86.0 to 4,594.0. About 2.6 billion shares worth around $4.5 billion had changed hands.

The big four banks were all in the black, with Westpac the best performer adding 66c, or 2.5% to $26.55. CBA put on 86c to close at $52.71.

The Banks and Financial sector advanced 2.2%.

Investment bank Macquarie rose $1.95, or 4.1% to $49.60, while bourse operator ASX gained 63c to $33.45 following a broker upgrade.

Insurers QBE and AXA Asia-Pacific rallied 4.3% and 5.4% to $22.42 and $4.30 respectively.

Materials and Resources gained 2.5%. In sector news, the FIRB has approved $285.8 million of Chinese investment in Australia's resources sector this week.

Diversified mining giant BHP Billiton added 96c, or 2.6% to $37.40, while rival Rio Tinto put on $2.41 to $65.00.

Alumina rose 7c to $1.60 after aluminium was the only base metal price to rise on the LME overnight.

Bluescope added 5c to $2.95 as reports surfaced that global mining giant Xstrata’s lawsuit against the Australian steel maker is unlikely to be a precursor to widespread legal action.

Sims Metal jumped 4.9% to $21.08.  Incitec Pivot climbed 11c, or 4.4% to $2.62 on the back of a broker upgrade.

Building materials companies James Hardie and Boral surged 2.6% and 3.7% to $7.18 and $5.55.

A drop in the price of crude could not stop Energy stocks from making ground. The sector was 1.6% higher.

Woodside added 43c to $47.83, while coal miner Whitehaven surged 20c to $3.97 and Aquila put on 28c to $7.78.

Linc Energy surged 12.5% to $1.58 after the company announced positive results from exploration drilling near Orroroo in South Australia.

Industrials put on 2.4%. Leighton rallied $1.99, or 5.9% to $35.80 after yesterday announcing a 25% rise in first quarter profit.

Transurban added to yesterday’s rally with a 5.9% gain to $5.55 on the back of a price target upgrade from UBS.

Toll put on 25c to $8.39 as it announced the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems.

Consumer Staples edged 0.6% higher. Woolworths added 31c to $27.97, while Wesfarmers climbed 22c, or 0.8% to $26.42.

GrainCorp shed 3.1% to $6.57 as it announced the successful completion of a retail bookbuild. The grain handler also received a broker upgrade in reports this morning.

Retailers sent Consumer Discretionary 0.8% higher. David Jones climbed 28c, or 5.4% to $5.47 and Harvey Norman rallied 11c to $4.11.

Newscorp was hit by profit-taking following strong gains this week. Its share price dropped 12c to $15.41.

Among the Property Trusts sector, Westfield rose 35c to $12.21, while Dexus jumped 3c, or 3.9% to 79.5c. The sector was 0.8% higher.

A 3c rise to $3.20 from Telstra saw the Telecommunications sector 1.1% above the line. 

Around the region, the Nikkei 225 gained 61.8 to 9,779.3, while the Straits Times Index put on 30.8 to 2,660.2. Across the Tasman, the NZSE50 added 15.7 to 3,160.2. The Hang Seng climbed 361.9 to be at 21,841.0

Spot gold was trading at US$1090.40 per ounce, and the Aussie was buying US$0.9132. 
 

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Linc to tap new coal find
Linc Energy shares jumped about 13% in morning trade Friday after the company announced positive results from exploration drilling near the town of Orroroo in South Australia. The company said the results of their study, as indicated by a third party company, showed a significant coal mineralisation target in accordance with the JORC Code of between 1 and 1.3 billion metric tonnes.

At the bell, Linc Energy shares were trading up 17.5c to $1.58.

ResMed reports record quarterly result
ResMed Inc. announced a record quarterly revenue and net income of US$247 million and US$42.1 million respectively for the three months to September 30, 2009. The company said revenue and income were up 13% and 50% on the previous corresponding period.

At the close, ResMed shares were up 15c to $5.55.

Telecom maintains guidance
Telecom Corporation of New Zealand reported a drop in first quarter EBITDA that was in line with previous guidance of 4.1% to NZ$447 million versus the previous corresponding period (“pcp”). The company also maintained its FY10 adjusted EBITDA guidance at -1% to +2% compared with FY09.

At the finish, Telecom shares were trading up 4c to $2.01.

Toll aquires Logistic Distribution Systems
Toll Holdings announced the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems (“LDS”). Toll said LDS provides an integrated international sea and air freight forwarding service as well as transport and logistics services.

At the end of the day, Toll shares were trading up 25c to $8.39.

A 2% climb on Wall Street following positive employment data sent Aussie shares climbing Friday morning. Heavyweight miners and insurers, two sectors which had been heavily sold in recent sessions, outperformed.

In its quarterly statement on monetary policy, the Reserve Bank increased its forecast for economic growth in 2010. The RBA suggested more interest rate hikes are likely.

In economic news, according to the Australian Industry Group-Housing Industry Association construction performance increased 0.1 points to 50.9 index points in October.

At noon, the All Ords had rallied 57.8 to 4,577.0, while the ASX/200 put on 57.4 to 4,565.4. About 1.1 billion shares worth around $1.7 billion had changed hands.

The big four banks were all in the black, with Westpac the best performer adding 56c, or 2.2% to $26.45.

The sector advanced 1.5%.

Investment bank Macquarie rose 2.4% to $48.79, while bourse operator ASX gained 48c to $33.30 following a broker upgrade.

Insurers QBE and AXA Asia-Pacific rallied 4.2% and 4.4% to $22.41 and $4.26 respectively.

Materials and Resources gained 1.5%. In sector news, the FIRB has approved $285.8 million of Chinese investment in Australia's resources sector this week.

Diversified mining giant BHP Billiton added 1.4% to $36.94, while rival Rio Tinto put on 1.5% to $63.53.

Alumina rose 5c to $1.58 after the price of aluminium was the only base metal to rise on the LME overnight.

Bluescope added 5c to $2.95 as reports surfaced that global mining giant Xstrata’s lawsuit against the Australian steel maker is unlikely to be a precursor to widespread legal action.

Sims Metal jumped 5.2% to $21.15.  Incitec Pivot climbed 13c, or 5.2% to $2.64 after JPMorgan upgraded its recommendation on the stock citing recent share price underperformance.

Building materials companies James Hardie and Boral surged 3% and 4.3% to $7.21 and $5.58.

A drop in the price of crude could not stop Energy stocks from making ground. The sector was 1.1% higher.

Woodside added 43c to $47.83, while coal miners Whitehaven and Aquila rose 2.9% each.

Linc Energy surged 10.7% to $1.555 after the company announced positive results from exploration drilling near Orroroo in South Australia.

Worley Parsons climbed $1.57 to $27.12.

Industrials outperformed other sectors, having put on 2.3%. Leighton rallied $1.87, or 5.5% to $35.68 after yesterday announcing a 25% rise in first quarter profit and giving a positive outlook.

Transurban added to yesterday’s rally with a 6.1% gain to $5.56 on the back of a price target upgrade from UBS.

Toll put on 18c to $8.32 after announcing the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems this morning.

Consumer Staples edged 0.2% higher after an indifferent morning. Woolworths added 21c to $27.87, while Wesfarmers dipped slightly lower to be trading at $26.18.

GrainCorp shed 3.1% to $6.57 as it announced the successful completion of a retail bookbuild. The grain handler also received a broker upgrade in reports this morning.

Retailers sent Consumer Discretionary 0.8% higher. David Jones climbed 23c, or 4.4% to $5.42 and Harvey Norman rallied 11c to $4.11.

Media company Fairfax gained 4c to $1.625.  

Goodman Group was the best of the Property Trust majors having jumped 4.3% to 60c. The sector was 0.8% higher.

A 2c rise to $3.19 from Telstra saw the Telecommunications sector 0.4% above the line. 

Around the region, the Nikkei 225 gained 119.7 to 9,837.1, while the Straits Times Index put on 41.5 to 2,670.9. Across the Tasman, the NZSE50 added 18.5 to 3,163.0.

Spot gold was trading at US$1089.05 per ounce, and the Aussie was buying US$0.9115.

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Linc to tap new coal find
Linc Energy shares jumped about 13% in morning trade Friday after the company announced positive results from exploration drilling near the town of Orroroo in South Australia. The company said the results of their study, as indicated by a third party company, showed a significant coal mineralisation target in accordance with the JORC Code of between 1 and 1.3 billion metric tonnes.

At noon, Linc Energy shares were trading up 15c to $1.555.

ResMed reports record quarterly result
ResMed Inc. announced a record quarterly revenue and net income of US$247 million and US$42.1 million respectively for the three months to September 30, 2009. The company said revenue and income were up 13% and 50% on the previous corresponding period.

At midday, ResMed shares were up 12c to $5.52.

Telecom maintains guidance
Telecom Corporation of New Zealand reported a drop in first quarter EBITDA that was in line with previous guidance of 4.1% to NZ$447 million versus the previous corresponding period (“pcp”). The company also maintained its FY10 adjusted EBITDA guidance at -1% to +2% compared with FY09.

At lunchtime, Telecom shares were trading up 2c to $1.99.

Toll aquires Logistic Distribution Systems
Toll Holdings announced the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems (“LDS”). Toll said LDS provides an integrated international sea and air freight forwarding service as well as transport and logistics services.

Half way through the day, Toll shares were trading up 21c to $8.35.

Linc Energy (LNC) shares jumped about 13% in morning trade Friday after the company announced positive results from exploration drilling near the town of Orroroo in South Australia. The company said the results of their study, as indicated by a third party company, showed a significant coal mineralisation target in accordance with the JORC Code of between 1 and 1.3 billion metric tonnes.

Linc Energy said the find was at an ideal depth for Underground Coal Gasificiation ("UCG)" and the company would move quickly to develop a ‘modest’ UCG plant.

Underground coal gasification is an industrial process, which enables the coal to be converted into product gas and pumped to the surface through wells.

CEO Peter Bond said it was a fantastic find for the company.

”This deposit can support significant production of low cost synthesis gas for power generation and synthetic fuels GTL production for a generation or more,” Mr Bond said.

“With Orroroo’s close proximity to Adelaide and with good access to port and power transmission infrastructure, the location is just about perfect for what we are planning to achieve.” 

At 1114 AEDT, Linc Energy shares were trading up 18c to $1.585.

GrainCorp Limited (GNC) said it has successfully sold all of the new shares that were not taken up in the retail component of its recent capital raising. The company said the clearing price for the retail bookbuild was $6.50 per share, representing a 15% premium to the original offer price of $5.65. The grain handler said the retail bookbuild was still a discount of approximately 4.2% to the closing price of GrainCorp shares on 4 November 2009. GrainCorp said about 58% of eligible retail shareholders took up the original entitlement. The bookbuild process which was undertaken on 5 November 2009.

Geodynamics Limited (GDY) said it has been awarded $90 million in funding by the Federal Government under the Renewable Energy Demonstration Program. The company said the funding had been awarded following a competitive process and forms part of an overall $235 million award to 4 renewable energy demonstration projects across a range of emerging renewable technologies. Geodynamics said the funding would be staged over the life of the project with the final grant payment to be received following the commissioning of a 25 MW geothermal power plant in the Cooper Basin, expected to occur in late 2013.