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The local market drifted off lunchtime highs, however still finished the day stronger to close at its highest level since 27 October. Heavyweight miners and energy stocks were strong, while the insurers benefited from the takeover scuttlebutt gripping the market.

In economic news, an NAB business survey revealed business confidence rose in October. The positive results from the survey resulted in an upgrade to GDP forecasts to about 1% in 2009 and 2.5% in 2010, up from previous forecasts of 0.5% and 2% respectively.

The bank also joined the raft of private companies and government who are lowering their forecast maximum unemployment rate, this time from 6.75% to 6.5%.

Meanwhile, the Reserve Bank’s John Broadbent said leverage in the corporate sector has decreased, with intermediated debt being replaced by an influx of capital raisings.

At the close, the All Ords had rallied 57.5 to 4,744, while the ASX/200 put on 58.7 to 4,733.6. About 2.6 billion shares worth around $5.5 billion had changed hands.

The Banks and Financials sector rose 1 %.

AXA-Asia Pacific put on 7c, or 1.2% to $5.77, on top of yesterday’s 32% jump following its rejection of a takeover bid from AMP.

AMP shares jumped 4.4% to $6.39, while Suncorp-Metway rallied 4% to $9.17.

Among the banks CBA rose 47c, or 0.9% to $55.55 as UBS upgraded its rating on the stock to “buy”.

ANZ added 14c to $22.80 after launching a convertible preference share offer to raise $750 million. Westpac added just 12c to $26.40.

Materials and Resources put on 1.9% following a rise in all of the base metals prices on the LME overnight. 

BHP Billiton put on 88c to $38.49 and Rio Tinto advanced $1.70 to $67.45.

Fortescue jumped 13c, or 3.3% to $4.03 after securing an off-take agreement with joint venture partner BC Iron. BC Iron shares fell 4c to $1.20.

Orica added another 52c to yesterday’s strong gains to be trading at $24.13. The chemical and explosives manufacturer featured heavily in broker reports out this morning.

Gold stocks drifted lower late in trade despite the value of the precious metal reaching new record levels overnight. Newcrest was down 15c to $35.15.

Woodside was among a raft of energy companies up between 1% and 2%, gaining 80c to $49.31.

The Energy sector itself was 1.5% above the line.

The price of crude rose 2.5% to just shy of US$80 a barrel overnight as a result of US dollar weakness, rallies in equity markets as well as US oil production shut-ins.

Newcastle Port Corp revealed coal shipments from the Newcastle Port dropped 11% last week, while 24 ships were outside the harbour waiting to load.

Whitehaven jumped 2.4% to $4.19.

Consumer Discretionary stocks were mainly higher, however falls from several influential stocks saw that the sector was only 0.8% higher.

Myer put on 6c to $3.82, while rival David Jones added 10c to $5.78. Harvey Norman bucked the trend among the retailers, shedding 8c to $4.20.

Gamer Tatts advanced 3.4% to $2.47, while Flight Centre surged 69c, or 4.2% to $17.30.

Media company Fairfax lost 1.5c to $1.635 as it revealed a 15% fall in EBITDA for the first four months of FY10.

Another notable stock to be lower was Crown, which was down 7c to $8.38.

A 74c gain to $27.43 from Wesfarmers led the Consumer Staples sector 1.5% into the black. Wesfarmers announced the expansion of its Curragh coal mine to more than 8 million tonnes per year.

Foster’s climbed 17c to $5.58, while Woolworths added 3c to $28.43.

Industrials put on 0.9% as a 1.9% rise to $37.24 from Leightons was countered by a 1.8% fall from Brambles to $7.05.

Downer EDI was the standout in the sector, rallying 48c, or 5.7% to $8.94. In the afternoon the diversified engineering and construction company said it had secured more than $400 million worth of work on mining assets across Australia.

Property Trusts gained 0.2%, with Westfield down 17c to $12.17 and Stockland up 14c to $3.82.

A 2.7% rally from sector heavyweight Computershare resulted in the Information Technology sector being 2.1% higher. Computershare stocks were trading at $10.78.

Around the region, the Nikkei 225 rallied 95.7 to 9,904.7, while the Straits Times Index put on 18.5 to 2,711.9. Across the Tasman, the NZSE50 edged 2.3 higher to 3,167.4. The Hang Seng gained 187.9 to 22,395.5.

Spot gold was trading at US$1099.77 per ounce, and the Aussie was buying US$0.9267. 

 

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Downer EDI secures contracts worth $400m
Downer EDI said that its engineering division had secured more than $400m worth of contracts on upcoming projects. Downer EDI said the work included a two-year $170 million contract with Wesfarmers, as written on egoli.com.au, for the expansion of its Curragh mine in central Queensland. 

At the end of the day, Downer shares were up 48c to $8.94.

Wesfarmers to increase coal production
Wesfarmers announced that export metallurgical coal production capacity from its Curragh mine would increase from 6.5 – 7.0 mtpa to 8.0 – 8.5 mtpa from late 2011 following approval by the Wesfarmers board to expand the mine. The company said under the terms of the agreement, Curragh would gain access to an additional 46 million tonnes of reserves currently held by Stanwell Corporation Limited in the Curragh North mining area.

At the close, Wesfarmers shares were up 74c to $27.43.

ING Industrials off-loads assets for $76.1m
ING Industrial Fund said that it had off-loaded $76.1 million in ‘non-core properties’. The fund said the assets were sold from both its Australian and Canadian portfolios, with the Australian properties achieving close to book value.

At the bell, IIF shares were unchanged at $48c.

Count Financial predicts record 1H FY10
Count Financial said it expected to post a first half profit around 150% higher than the previous corresponding period, a record result for the company. The company reported a net profit to 31 December 2008 of $5.84 million, down 46% from the previous corresponding period.

At the finish, Count Financial shares were trading up 6c to $1.32.

IAG sees performance improve in 1Q
Insurance Australia Group said it expects to deliver an insurance margin towards the upper end of its 9–11% guidance for FY10 if operating conditions experienced in the first quarter continue. Managing director and CEO, Michael Wilkins, said the company had seen the underlying performance of the business continue to improve in the first quarter, while also having the added benefit of narrowing credit spreads.

At the end of the day, IAG shares were up 13c to $4.00.

BC Iron secures off-take agreement
BC Iron said that Nullagine Joint Venture, its 50% joint venture with Fortescue Metals Group, had secured its first off-take agreements with a Hong Kong-based industrial and trading company. The off-take agreement includes US$50 million in pre-payments to fund the development of the mine.

At the close, BC Iron shares were trading down 4c to $1.20, while Fortescue shares were up 13c to $4.03.

ANZ to raise $750m
Australia and New Zealand Banking Group Limited (ANZ) launched a convertible preference share offer to raise $750 million. The company said the offer forms part of its diversified capital management strategy and follows reductions in Tier 1 capital following hybrid capital redemptions and notices of redemption totaling approximately $1 billion over the past six months.

At the bell, ANZ shares were up 14c to $22.80.

Breville upgrades its outlook
Breville Group said that the positive trading environment meant it was now expecting underlying EBITDA to be around $38.5 million for the year, with underlying net profit to come in at $19 million. Breville said this was higher than the consensus estimates of a basket of brokers, including Credit Suisse, GSJBWere, Macquarie and Wilson HTM.

At the finish, Breville shares were trading flat at $2.30.

New Hope coal output up 11%
New Hope Corporation said saleable coal production increased 11% to 1.4 million tonnes in the three months to 31 October 2009 compared to the previous corresponding period. The company attributed a 20% jump in coal sold in the same period to strong demand from export customers coupled with higher production and available rail capacity.

At the end of the day, New Hope shares were down 2c to $4.33.

Downer EDI Limited (DOW) said that its engineering division had secured more than $400 million worth of contracts on upcoming projects. Downer EDI said the work included a two-year $170 million contract with Wesfarmers, as written on egoli.com.au, for the expansion of its Curragh mine in central Queensland.

A further $90 million in contracts was for work on the expansion BHP Billiton iron ore at its “Rapid Growth Phase 5 Project” in Western Australia.

Downer EDI managing director Geoff Knox said the contracts reinforced the strong business model of the company. 

“These wins reinforce Downer’s position as a leading provider of mechanical and electrical contracting services,” Mr Knox said. 

“The Curragh project, scheduled to commence in December this year, includes design and construction of a stand alone coal-processing facility to increase the mine’s total processing capacity to 2300 t/h. The project also involves tie-ins to existing brownfields infrastructure.”

The company’s work-in-hand remains in excess of $16 billion.

At 1406 AEDT, Downer shares were worth $8.88, up 42c.

Wesfarmers Limited (WES) announced that export metallurgical coal production capacity from its Curragh mine would increase from 6.5 – 7.0 million tonnes per annum to 8.0 – 8.5 mtpa from late 2011 following approval by the Wesfarmers board to expand the mine. The company said under the terms of the agreement, Curragh would gain access to an additional 46 million tonnes of reserves currently held by Stanwell Corporation Limited in the Curragh North mining area.

Wesfarmers said a key element of the expansion was reaching an agreement with Stanwell, which would underpin the increase in Curragh mine metallurgical coal sales, subject to market conditions.

The company said Stanwell would benefit through a new export rebate formula linked to Curragh metallurgical coal sales above 7 mtpa.

Wesfarmers said the expansion would include the construction of a new stand-alone Coal Handling and Preparation Plant as well as mine infrastructure at a cost of $286 million and is expected to be completed by late 2011.

Managing Director of Wesfarmers Resources, Stewart Butel, said the expansion would further lift the long term prospects for Curragh and ensure that the company can take advantage of the forecast increase in seaborne metallurgical coal demand

“It will provide additional employment at the mine both during the construction phase and in the longer term,” Mr Butel said.

“Our customers will benefit from increased metallurgical coal supply and the Queensland State Government will receive higher royalty collections.”

Wesfarmers said it has contracted rail and port capacity in place to support the increase in metallurgical coal sales from the Curragh mine.

The company also announced director of its Industrial Divisions, Keith Gordon, is leaving the company to become managing director and CEO of Emeco Holdings Limited.

As at 1344 AEDT, Wesfarmers shares were up 69c to $27.38.

Australian stocks rallied Tuesday as the local currency approached a 2009 high following gains in equity and commodity markets. Global markets have been buoyed by optimism after a string of better than expected earnings results and an agreement to continue with stimulus measures.  

In economic news, an NAB business survey revealed business confidence rose in October. The positive results from the survey resulted in an upgrade to GDP forecasts to about 1% in 2009 and 2.5% in 2010, up from previous forecasts of 0.5% and 2% respectively.

The survey also saw a reduction in peak unemployment from 6.75% to 6.5%.

Meanwhile, the Reserve Bank’s John Broadbent said leverage in the corporate sector has decreased, with intermediated debt being replaced by an influx of capital raisings.

At lunch, the All Ords had rallied 64.3 to 4,750.8, while the ASX/200 put on 64.7 to 4,739.6. About 1.2 billion shares worth around $2.2 billion had changed hands.

The Banks and Financials sector was boosted by acquisition talks among insurers. The sector rose 1.3%.

AXA-Asia Pacific put on 16c, or 2.8% to $5.86 after yesterday rejecting a takeover bid from AMP.

AMP shares jumped 4.2% to $6.38, while Suncorp-Metway rallied 3.4% to $9.12.

Among the banks CBA rose 69c, or 1.3% to $55.77 as UBS upgraded its rating on the stock to “buy”.

ANZ added 24c to $22.90 after launching convertible preference share offer to raise $750 million this morning.

Materials and Resources outperformed every sector except for IT with a 2% gain following a rise in all of the base metals prices on the LME overnight. 

BHP Billiton and Rio Tinto couldn’t match the gains seen on the FTSE but were still stronger, adding 14 point to the broader index.

BHP put on 79c to $38.40 and Rio advanced $1.74 to $67.49.

Fortescue jumped 3.3% to $4.03.

Orica added another 33c to yesterday’s strong gains to be trading at $23.94. The chemical and explosives manufacturer received a broker upgrade in broker reports this morning after reporting a positive result yesterday for the year ending 30 September 2009. 

Gold stocks saw modest gains despite the value of the precious metal remaining at record levels. Newcrest was up 35c to $35.65.

Woodside led the Energy sector 1.6% above the line. The sector heavyweight gained $1.13 to $49.64.

The price of crude rose 2.5% to just shy of US$80 a barrel overnight as a result of US dollar weakness, rallies in equity markets as well as US oil production shut-ins.

Newcastle Port Corp revealed coal shipments from the Newcastle Port dropped 11% last week, while 24 ships were outside the harbour waiting to load.

Aquila Resources jumped 3.6% to $8.31.

Consumer Discretionary stocks were mainly higher, however falls from several influential stocks saw that the sector was only 0.9% higher.

Myer put on 4c to $3.80 as its private equity firm TPG conceded that its float of the department store tested its reputation.

Rival David Jones added 13c to $5.81, while gamer Tatts advanced 2.5% to $2.45.

Flight Centre surged 5.1% to $17.46.

Media company Fairfax lost 2.5c to $1.625 as it revealed a 15% fall in EBITDA for the first four months of FY10.

Other notable stocks to be lower were Newscorp and Crown, which were both 0.5% in the red.

A 71c gain to $27.40 from Wesfarmers led the Consumer Staples sector 1.5% into the black.

Brewer Foster’s climbed 16c, or 3% to $5.57, while Woolworths added 27c to $28.67.

Industrials put on 0.6% as a 2.1% rise to $37.33 from Leightons was somewhat countered by a 1.1% fall from Brambles to $7.10.

Downer EDI was the standout in the sector, rallying 3.9% to $8.79.

Property Trusts gained 0.8%, with Westfield down 5c to $12.29 and Stockland up 9c to $3.77.

A 3% rally from sector heavyweight Computershare resulted in the Information Technology sector being 2.8% higher. Computershare stocks were trading at $10.79.

Around the region, the Nikkei 225 rallied 143.1 to 9 952.1, while the Straits Times Index put on 30.1 to 2,723.5. Across the Tasman, the NZSE50 dipped 0.6 to 3,164.5.

Spot gold was trading at US$1,103.40 per ounce, and the Aussie was buying US$0.9305. 

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ING Industrials off-loads assets for $76.1m
ING Industrial Fund said that it had off-loaded $76.1 million in ‘non-core properties’. The fund said the assets were sold from both its Australian and Canadian portfolios, with the Australian properties achieving close to book value.

At midday, IIF shares were unchanged at $48c.

Count Financial predicts record 1H FY10
Count Financial said it expected to post a first half profit around 150% higher than the previous corresponding period, a record result for the company. The company reported a net profit to 31 December 2008 of $5.84 million, down 46% from the previous corresponding period.

At noon, Count Financial shares were trading up 5.5c to $1.315.

IAG sees performance improve in 1Q
Insurance Australia Group said it expects to deliver an insurance margin towards the upper end of its 9–11% guidance for FY10 if operating conditions experienced in the first quarter continue. Managing director and CEO, Michael Wilkins, said the company had seen the underlying performance of the business continue to improve in the first quarter, while also having the added benefit of narrowing credit spreads.

Half way through the day, IAG shares were up 2c to $3.89.

BC Iron secures off-take agreement
BC Iron said that Nullagine Joint Venture, its 50% joint venture with Fortescue Metals Group, had secured its first off-take agreements with a Hong Kong-based industrial and trading company. The off-take agreement includes US$50 million in pre-payments to fund the development of the mine.

At lunchtime, BC Iron shares were trading down 1c to $1.23, while Fortescue shares were up 14c to $4.04.

ANZ to raise $750m
Australia and New Zealand Banking Group Limited (ANZ) launched a convertible preference share offer to raise $750 million. The company said the offer forms part of its diversified capital management strategy and follows reductions in Tier 1 capital following hybrid capital redemptions and notices of redemption totaling approximately $1 billion over the past six months.

At noon, ANZ shares were up 23c to $22.89.

Breville upgrades its outlook
Breville Group said that the positive trading environment meant it was now expecting underlying EBITDA to be around $38.5 million for the year, with underlying net profit to come in at $19 million. Breville said this was higher than the consensus estimates of a basket of brokers, including Credit Suisse, GSJBWere, Macquarie and Wilson HTM.

At midday, Breville shares were trading flat at $2.30.

New Hope coal output up 11%
New Hope Corporation said saleable coal production increased 11% to 1.4 million tonnes in the three months to 31 October 2009 compared to the previous corresponding period. The company attributed a 20% jump in coal sold in the same period to strong demand from export customers coupled with higher production and available rail capacity.

At lunchtime, New Hope shares were down 1c to $4.34.

ING Industrial Fund (IIF) said that it had off-loaded $76.1 million in ‘non-core properties’. The fund said the assets were sold from both its Australian and Canadian portfolios, with the Australian properties achieving close to book value.

The statement released to the ASX noted the funds raised would be used to reduce debt levels, however IIF’s CEO Paul Toussaint said the money would be reinvested.

“We remain focussed on actively managing our portfolio, and as such these transactions highlight our strategy of unlocking value from our non core assets with a view to reinvestment in earnings enhancing activities,” Mr Toussaint said.

In Australia, IIF said it had sold Airlink Business Park at Mascot for $22 million the Greenhills Industrial Estate at Moorebank for $10.8 million.

At 1143 AEDT, IIF shares were up 0.5c to $48.5c.

ING Industrial Fund (IIF) said that it had off-loaded $76.1 million in ‘non-core properties’. The fund said the assets were sold from both its Australian and Canadian portfolios, with the Australian properties achieving close to book value.

The statement released to the ASX noted the funds raised would be used to reduce debt levels, however IIF’s CEO Paul Toussaint said the money would be reinvested.

“We remain focussed on actively managing our portfolio, and as such these transactions highlight our strategy of unlocking value from our non core assets with a view to reinvestment in earnings enhancing activities,” Mr Toussaint said.

In Australia, IIF said it had sold Airlink Business Park at Mascot for $22 million the Greenhills Industrial Estate at Moorebank for $10.8 million.

At 1143 AEDT, IIF shares were up 0.5c to $48.5c.

ING Industrial Fund (IIF) said that it had off-loaded $76.1 million in ‘non-core properties’. The fund said the assets were sold from both its Australian and Canadian portfolios, with the Australian properties achieving close to book value.

The statement released to the ASX noted the funds raised would be used to reduce debt levels, however IIF’s CEO Paul Toussaint said the money would be reinvested.

“We remain focussed on actively managing our portfolio, and as such these transactions highlight our strategy of unlocking value from our non core assets with a view to reinvestment in earnings enhancing activities,” Mr Toussaint said.

In Australia, IIF said it had sold Airlink Business Park at Mascot for $22 million the Greenhills Industrial Estate at Moorebank for $10.8 million.

At 1143 AEDT, IIF shares were up 0.5c to $48.5c.

Count Financial Limited (COU) said it expected to post a first half profit around 150% higher than the previous corresponding period, a record result for the company. The company reported a net profit to 31 December 2008 of $5.84 million, down 46% from the previous corresponding period.

Count Financial said ‘CountPlus’, the 2006 acquired professional services firm whose goal is take stakes in accounting and financial planning companies, was performing strongly, with 13 businesses partly acquired.

The budgeted 2010 profits, before non-cash amortisation expense of Acquired Client Relations of the 13 businesses, is 35% above “purchased” net profit.

”Most businesses for the three months to September are performing well in excess of 2010 YTD budget,” the company said.

At 1124 AEDT, Count Financial shares were trading up 3.5c to $1.295.

Count Financial Limited (COU) said it expected to post a first half profit around 150% higher than the previous corresponding period, a record result for the company. The company reported a net profit to 31 December 2008 of $5.84 million, down 46% from the previous corresponding period.

Count Financial said ‘CountPlus’, the 2006 acquired professional services firm whose goal is take stakes in accounting and financial planning companies, was performing strongly, with 13 businesses partly acquired.

The budgeted 2010 profits, before non-cash amortisation expense of Acquired Client Relations of the 13 businesses, is 35% above “purchased” net profit.

”Most businesses for the three months to September are performing well in excess of 2010 YTD budget,” the company said.

At 1124 AEDT, Count Financial shares were trading up 3.5c to $1.295.

Count Financial Limited (COU) said it expected to post a first half profit around 150% higher than the previous corresponding period, a record result for the company. The company reported a net profit to 31 December 2008 of $5.84 million, down 46% from the previous corresponding period.

Count Financial said ‘CountPlus’, the 2006 acquired professional services firm whose goal is take stakes in accounting and financial planning companies, was performing strongly, with 13 businesses partly acquired.

The budgeted 2010 profits, before non-cash amortisation expense of Acquired Client Relations of the 13 businesses, is 35% above “purchased” net profit.

”Most businesses for the three months to September are performing well in excess of 2010 YTD budget,” the company said.

At 1124 AEDT, Count Financial shares were trading up 3.5c to $1.295.