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Local shares rose 0.5% Wednesday on the back of a strong lead from property stocks and heavyweight miners. Investors chose to focus on individual stocks over broader sector movements, with the major players in the banks and retailers posting very different results.

In consumer economic news, the Westpac-Melbourne Institute consumer sentiment index dropped by 2.5% in November to 118.3 after a 1.7% rise in October. The decline comes on the back of two-rate rises in recent months taking a bite out of consumer discretionary spending.

At the close, the All Ords had rallied 21.9 to 4,765.9, while the ASX/200 put on 23.4 to 4,757.0. About 2.5 billion shares worth around $5.3 billion had changed hands.

Among the banks, ANZ added 15c to $22.95 and CBA lost 55c to be trading at $55.

Late in the afternoon CBA's CEO, Ralph Norris said that the headwinds that hurt the company’s bottom line earlier in the year were still present, though the company was poised to strengthen.

Macquarie lost $1.32 to slip below the $50 per share barrier, as the broader Banks and Financials sector put on 0.4%.

Insurers were mixed. AXA Asia Pacific reversed morning gains to finish down 9c or 1.4% to 5.69%, as investors locked in profits after the insurers share price rose over 35% in three days.
 
IAG lost 6c to $3.94.

Property Trust stocks jumped on news Investa was abandoning plans to list on the market and preventing the dilution of funds for other sector players.

Westfield climbed 42c to $12.59, while Dexus, Mirvac and Stockland all added over 6%. The sector was 4.2% higher.

Among the miners, BHP Billiton put on 61c to $39.10, while Rio Tinto gained $1.15 to $68.60.

Metals on the LME traded mixed Tuesday, though the broader Materials and Resources sector in Australia added 1%.

Gold miners Lihir, up 3c to $3.41, and Newcrest, up 18c to $35.33, showed strength as the price of gold continued its seemingly endless rise.

Fortescue added 4c to $4.07.

Among home building materials suppliers James Hardie reversed morning losses to tack on 12c, or 1.6% to $7.45.

The Industrials sector was down 0.1% despite an 88c, or 2.4% climb to $38.12 from sector heavyweight Leightons.

The gains were offset by modest declines from much of the transportation stocks, with Transurban down 3c to $5.50.

Macquarie Airports dropped 5c to $2.84.

The Energy sector was mixed, though posted gains of 0.1% overall. Uranium specialists Paladin and ERA were down 0.7% and 2.6% respectively, while Woodside added 54c to $49.84.

Consumer Discretionary edged 0.7% higher as retailer Pacific Brands outperformed its peers, adding 5c to $1.35.

Crown, Billabong and Aristocrat all posted modest declines, while the media stocks, including Fairfax which was up 4c to $1.675, countered.

The Consumer Staples sector made 0.3% despite a 29c fall in the price of Woolworths shares to $28.14. The company received approval from the ACCC for the purchase of Danks to enter the hardware retail space.

Wesfarmers added 56c to $27.99 to close in on Woolworths share price.

Healthcare stocks rose 0.7%. CSL and Sonic added 46c and 8c to $14.19 and $32.30 respectively.

Victorian based electricity distributor SP Ausnet shed 2.5c to 87c after being downgraded by Credit Suisse.

AGL Energy gained 34c to $13.98 with the Utilities sector up 1.1%.

Telstra was unchanged at $3.26 as the broader Telecommunications sector strengthened 0.2%. Singapore Telecommunications rose 6c, or 2.7% to $2.32.

Around the region, the Nikkei 225 fell 9.4 to 9,861.3, while the Straits Times Index put on 3.5 to 2,711.1. Across the Tasman, the NZSE50 dipped 5.9 to 3,161.5. The Hang Seng put on 153.0 to 22,421.2

Spot gold was trading at US$1,108.64 per ounce, and the Aussie was buying US$0.9297. 

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CBA CEO says bank is well placed
Commonwealth Bank of Australia said it is well placed to continue to strengthen its business franchise and improve its financial performance and returns. However, the bank said due to the current environment it would maintain its conservative approach to capital, funding, liquidity and provisioning.

At the finish, CBA shares were down 55c to $55.00.

Fletcher Building remains cautious
Fletcher Building said it remains cautious with respect to trading conditions for the balance of 2010. At its AGM in Dunedin, New Zealand, the company said current analysts’ forecasts for net earnings after tax, excluding unusual items, for the full year are in the range from $261 million to $340 million.

At the close, Fletcher Building shares were down 4c to $6.34.

Ausenco downgrades earnings guidance
Ausenco downgraded its full year sales revenue for 2009 to between $435m and $465m and underlying net profit after tax of between $26m and $30m as a result of delays in the awarding of contracts. The company said large-scale EPCM projects that it anticipated would be awarded in the fourth quarter of 2009 are now more likely to be awarded early in 2010.

At the end of the day, Ausenco shares were down 11c to $4.27.

Optus 1H profit, up 22%
Australian telco Optus reported an increase in net profit of 22% to $152m for the six months to 30 September 2009, from the previous corresponding period. Meanwhile Optus’s parent company, Singapore Telecommunications Limited (SGT) reported an 8.9% jump in net profit to $1.9 billion for the six months to 30 September 2009 from the pcp.

By the finish, Singtel shares had gained 6c to $2.32.

Mineral Resources boosts Polaris offer
Mineral Resources has increased its offer for West Australian based iron ore explorer Polaris Metals. The new offer would sees Mineral Resources offer one MIN share for 10 Polaris shares and 5c cash for every one Polaris share.

At the final whistle, Polaris shares were up 3.5c to 75c per share, while Mineral Resources shares had shed 12c to $6.85.

CPA reaffirms guidance
Commonwealth Property Office Fund reaffirmed previous distribution guidance of 5.3c per unit for FY10, based on a continuation of existing economic conditions. The fund said it expects to see an improvement in tenant demand for office space across Australia due to the resilience of the Australian economy.

By the finish, Commonwealth Property Office Fund shares were up 4c to 98c.

CFX retains forecast
CFS Retail Property Trust said it remained cautious and retained its forecast expectation of specialty retail sales growth slowing across its portfolio to approximately 3% despite solid sales performance over the September quarter. The shopping centre focused fund also retained its distribution projection of 12.5c per unit for FY10.

At the finish, CFS Retail Property Trust shares were up 4c to $1.97.

St Barbara taps market for $124m
St Barbara said it was tapping the market for up to $124m in a 4 for 13 Accelerated Non-Renounceable Pro Rata Entitlement Offer at an offer price of 27c per share. Following the offer, St Barbara said it would have the balance sheet and funding flexibility to pursue its growth objectives.

St Barbara shares were halted at 36c.  

Commonwealth Bank of Australia (CBA) said it is well placed to continue to strengthen its business franchise and improve its financial performance and returns. However, the bank said due to the current environment it would maintain its conservative approach to capital, funding, liquidity and provisioning.

CEO, Ralph Norris, said the headwinds, which impacted the company’s performance in 2009, have continued into the new financial year.

“However the 2010 year will present challenges (as well as opportunities) for your Group and its customers and the outlook is by no means clear,” Mr Norris said.

In FY09 CBA delivered a net profit after tax of $4.42 billion, which the company said was driven by strong operating income growth and a disciplined approach to costs.

The company’s Return on Equity was 15.8%, which enabled it to pay shareholders over $3 billion in dividends.

As at 1544 AEDT, CBA shares were down 77c to $54.78.

RBS – Round Up – 111109

Challenger Infrastructure Fund (CIF) announced that it has entered into an agreement to sell its remaining 15.6% holding in Southern Water for $304 million. The fund said the sale price was completed at the 30 June 2009 Net Asset Value and represents a multiple of 1.26x Southern Water’s regulated capital value. Challenger Infrastructure expects settlement to occur on or before 20 January 2010. The fund said the divestment would allow it to invest in high growth opportunities within its existing portfolio as well as the ability to fund other capital management initiatives. Challenger Infrastructure said the transaction also includes the sale of the balance of CIF’s temporary loan ($12.5 million including interest) invested in the company in March 2009, to the extent that it has not already been repaid prior to settlement.

Australian Worldwide Exploration Limited (AWE) said it has agreed to buy CalEnergy Gas (Australia) Limited’s 15% equity interest in the BassGas Project for $80 million. Separately, AWE said it has also entered into arrangements that would see Innamincka Petroleum Limited (INP) acquire 7.5% of the CalEnergy equity. The CalEnergy and Innamincka arrangements mean that AWE’s share of the project would increase from 42.5% to 50%. AWE said the transactions would be subject to usual conditions including necessary joint venture and regulatory approvals.

Nexus Energy Limited (NXS) said that following the completion of the Longtom offshore installation activities, the project has been producing gas and condensate for over two weeks via Santos Limited’s (STO) onshore gas plant in Orbost. Nexus said the project had produced average daily gas volumes in excess of 30 TJ/d and average daily condensate in excess of 430 bbl/d since 27 October. The company said real time pressure measurement is in line with expectations and the subsea gathering and control systems are all functioning as expected. Nexus expects the Longtom gas project to provide the company stable cash flow over the next ten plus years, with a forecast pre-tax cash flow of around $70 million per annum based on 25 PJ per annum of gas sales.

Entek Energy Limited (ETE) said it has been awarded three new blocks in the Gulf of Mexico by the Minerals Management Service. The company said it would now initiate independent certification of the proven, probable and possible reserves on WC 517 and initiate detailed studies on GA 212 and GA 213. Entek said WC 517 has proven reserves, only requires a single well development, and is within easy tie back to infrastructure. The company said GA 212 and GA 213 are important because they add significant oil exploration potential.

Gunns Limited (GNS) chairman John Gay said that the company was talking to investors as it seeks to complete the final stages of the Bell Bay Pulp Mill as the improving economy increasing the feasibility for the project. Gunns said one of the company’s that it was in discussions with was Swedish foresty company Sodra, who could take up to a 40% stake in the project according to Gunns. Mr Gay said there were a number of opportunities arising to secure management and ownership of other plantation assets and processing operations.

The Aussie market added another 0.6% this morning, making gains of 3.6% in just 2.5 sessions this week. The rise defied a flat lead in from overseas markets, with the property stocks outperforming on a day the banks and mid-cap miners were trading relatively flat.

In consumer economic news, the Westpac-Melbourne Institute consumer sentiment index dropped by 2.5% in November to 118.3, despite a 1.7% rise in the October. The decline comes on the back of two-rate rises in recent months taking a bite out of consumer discretionary spending.

At lunch, the All Ords had rallied 25.8 to 4,769.8, while the ASX/200 put on 27.9 to 4,761.5. About 1 billion shares worth around $1.8 billion had changed hands.

Among the banks, ANZ added 7c to $22.87, while CBA lost 23c to be trading at $55.32.

Macquarie lost 54c to slip below the $50 per share barrier, as the broader Banks and Financials sector put on 0.6%.

Insurers, the talk of much of the market this week, were mixed. AXA Asia Pacific put on 5c to $5.82 taking gains for the week to 35.3%.

IAG lost 5c to $3.95.

Property stocks jumped on news Investa was abandoning plans to list on the market and preventing the dilution of funds for other sector players.

Westfield climbed 35c to $12.52, while Dexus, Mirvac, GPT Group and Stockland all added between 4% and 5%. The sector was 3.0% higher.

Among the miners, BHP Billiton added 40c to $38.89, while Rio Tinto added 93c to $68.38.

Metals on the LME traded mixed and flat Tuesday thoug the broader Materials and Resources in Australia added 0.9%.

Gold miners Lihir, up 5c to $3.43 and Newcrest, up 25c to $35.40 showed strength as the price of gold continued its seemingly endless rise.

Home building materials suppliers were largely trading lower, with James Hardie down 7c, or 1% to $7.26.

The Industrials sector was up 0.1% on the back of a 76c, or 2% climb to $38.00 from sector heavyweight Leightons.

The gains were offset by modest declines from much of the transportation sector, with Transurban down 2c to $5.51 and rival toll-road operator Macquarie Infrastructure down 0.5c to $1.395.

The Energy sector was mixed, though posted gains of 0.4% overall. Uranium specialists Paladin and ERA were down 1.2% and 2.2% respectively, while Woodside added 45c to $49.76.

Consumer Discretionary stocks were mixed, though the sector edged 0.7% higher overall.

Pacific Brands outperformed its peers, adding 6c to $1.36.

Harvey Norman, Billabong and Aristocrat all posted modest declines, while the media stocks, including Fairfax, up 3.5c to $1.67, countered.

The Consumer Staples sector made 0.2% despite a 20c fall in the price of Wooworths shares to $28.23.

Wesfamers added 60c to $28.03 to close in on Woolworths share price, though still down 34% from mid-2007 highs.

Healthcare stocks rose 0.8%. CSL and Sonic added 11c and 22c to $14.22 and $32.06 respectively.

Victorian based electricity distributor, SP Ausnet, shed 2.5c to 87c after being downgraded by Credit Suisse.

AGL Energy added 22c to $13.86 with the Utilities sector up 1.1%.

A 1c fall in the price of Telstra shares to $3.25 saw the broader Telecommunications sector fall 0.2%.

Around the region, the Nikkei 225 rallied 56.8 to 9,927.5, while the Straits Times Index put on 13.5 to 2,721.1. Across the Tasman, the NZSE50 dipped 1.0 to 3,166.5.

Spot gold was trading at US$1106.50 per ounce, and the Aussie was buying US$0.9312. 

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The Aussie market added another 0.6% this morning, making gains of 3.6% in just 2.5 sessions this week. The rise defied a flat lead in from overseas markets, with the property stocks outperforming on a day the banks and mid-cap miners were trading relatively flat.

In consumer economic news, the Westpac-Melbourne Institute consumer sentiment index dropped by 2.5% in November to 118.3, despite a 1.7% rise in the October. The decline comes on the back of two-rate rises in recent months taking a bite out of consumer discretionary spending.

At lunch, the All Ords had rallied 25.8 to 4,769.8, while the ASX/200 put on 27.9 to 4,761.5. About 1 billion shares worth around $1.8 billion had changed hands.

Among the banks, ANZ added 7c to $22.87, while CBA lost 23c to be trading at $55.32.

Macquarie lost 54c to slip below the $50 per share barrier, as the broader Banks and Financials sector put on 0.6%.

Insurers, the talk of much of the market this week, were mixed. AXA Asia Pacific put on 5c to $5.82 taking gains for the week to 35.3%.

IAG lost 5c to $3.95.

Property stocks jumped on news Investa was abandoning plans to list on the market and preventing the dilution of funds for other sector players.

Westfield climbed 35c to $12.52, while Dexus, Mirvac, GPT Group and Stockland all added between 4% and 5%. The sector was 3.0% higher.

Among the miners, BHP Billiton added 40c to $38.89, while Rio Tinto added 93c to $68.38.

Metals on the LME traded mixed and flat Tuesday thoug the broader Materials and Resources in Australia added 0.9%.

Gold miners Lihir, up 5c to $3.43 and Newcrest, up 25c to $35.40 showed strength as the price of gold continued its seemingly endless rise.

Home building materials suppliers were largely trading lower, with James Hardie down 7c, or 1% to $7.26.

The Industrials sector was up 0.1% on the back of a 76c, or 2% climb to $38.00 from sector heavyweight Leightons.

The gains were offset by modest declines from much of the transportation sector, with Transurban down 2c to $5.51 and rival toll-road operator Macquarie Infrastructure down 0.5c to $1.395.

The Energy sector was mixed, though posted gains of 0.4% overall. Uranium specialists Paladin and ERA were down 1.2% and 2.2% respectively, while Woodside added 45c to $49.76.

Consumer Discretionary stocks were mixed, though the sector edged 0.7% higher overall.

Pacific Brands outperformed its peers, adding 6c to $1.36.

Harvey Norman, Billabong and Aristocrat all posted modest declines, while the media stocks, including Fairfax, up 3.5c to $1.67, countered.

The Consumer Staples sector made 0.2% despite a 20c fall in the price of Wooworths shares to $28.23.

Wesfamers added 60c to $28.03 to close in on Woolworths share price, though still down 34% from mid-2007 highs.

Healthcare stocks rose 0.8%. CSL and Sonic added 11c and 22c to $14.22 and $32.06 respectively.

Victorian based electricity distributor, SP Ausnet, shed 2.5c to 87c after being downgraded by Credit Suisse.

AGL Energy added 22c to $13.86 with the Utilities sector up 1.1%.

A 1c fall in the price of Telstra shares to $3.25 saw the broader Telecommunications sector fall 0.2%.

Around the region, the Nikkei 225 rallied 56.8 to 9,927.5, while the Straits Times Index put on 13.5 to 2,721.1. Across the Tasman, the NZSE50 dipped 1.0 to 3,166.5.

Spot gold was trading at US$1106.50 per ounce, and the Aussie was buying US$0.9312. 

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St Barbara Limited (SBM) said it was tapping the market for up to $124 million in a 4 for 13 Accelerated Non-Renounceable Pro Rata Entitlement Offer at an offer price of 27c per share. Following the offer, St Barbara said it would have the balance sheet and funding flexibility to pursue its growth objectives.

Funds would also be used in the development of Tower Hill or Tarmoola subject to final approval following completion of a feasibility study, the company added.

Tim Lehany, the managing director and CEO of St Barbara, said he encouraged shareholders to take up the offer.

”Since completing our comprehensive strategic review in July 2009, St Barbara has announced two consecutive quarters of production in line with expectations at Leonora and Southern Cross and remains on track to deliver its three year plan,” Mr Lehany said.

”We believe that St Barbara has an exciting future that will be built on the development of its key project.”

The 27c share price is a 23% discount to the volume weighted average price of 36c per share in the five days before yesterday’s trading halt.

CFS Retail Property Trust (CFX) said it remained cautious and retained its forecast expectation of specialty retail sales growth slowing across its portfolio to approximately 3% despite solid sales performance over the September quarter. The shopping centre focused fund also retained its distribution projection of 12.5c per unit for FY10.

Looking at the September quarter results, the trust reported retail specialty sales growth of 3.8%, while gearing stood at 30% at 30 September 2009.

CFX Fund Manager, Michael Gorman, said the performance of retail specialty store sales remained solid, which he said reflects improved consumer confidence which had been buoyed by the impact of the fiscal stimulus and low interest rates.

The trust said it had undrawn debt facilities of approximately $440 million as at 30 September 2009.

“By maintaining a strong balance sheet the trust is well placed to capitalise on opportunities that may arise going forward,” Mr Gorman said.

Over the period, the trust’s property portfolio of 24 retail assets recorded total sales in excess of $6.2 billion, up about $77.5 million from the previous corresponding period.

Across the retailing categories, CFS said comparable MAT growth was strongest in mini-majors with an increase of 6.2%, while retail specialty store sales growth stood at 3.8%.

The trust said comparable sales growth in the major tenant categories were mixed with supermarket sales up 1.5%, discount department stores sales up 1.4% and department stores sales down 0.6%.

Head of Property, Mr Darren Steinberg, said the redevelopments that are nearing completion and those planned for the next phase of development would assist the trading performance and value of the trust’s shopping centres.

As at 1129 AEDT, CFS Retail Property Trust shares were up 0.5c to $1.935.

CFS Retail Property Trust (CFX) said it remained cautious and retained its forecast expectation of specialty retail sales growth slowing across its portfolio to approximately 3% despite solid sales performance over the September quarter. The shopping centre focused fund also retained its distribution projection of 12.5c per unit for FY10.

Looking at the September quarter results, the trust reported retail specialty sales growth of 3.8%, while gearing stood at 30% at 30 September 2009.

CFX Fund Manager, Michael Gorman, said the performance of retail specialty store sales remained solid, which he said reflects improved consumer confidence which had been buoyed by the impact of the fiscal stimulus and low interest rates.

The trust said it had undrawn debt facilities of approximately $440 million as at 30 September 2009.

“By maintaining a strong balance sheet the trust is well placed to capitalise on opportunities that may arise going forward,” Mr Gorman said.

Over the period, the trust’s property portfolio of 24 retail assets recorded total sales in excess of $6.2 billion, up about $77.5 million from the previous corresponding period.

Across the retailing categories, CFS said comparable MAT growth was strongest in mini-majors with an increase of 6.2%, while retail specialty store sales growth stood at 3.8%.

The trust said comparable sales growth in the major tenant categories were mixed with supermarket sales up 1.5%, discount department stores sales up 1.4% and department stores sales down 0.6%.

Head of Property, Mr Darren Steinberg, said the redevelopments that are nearing completion and those planned for the next phase of development would assist the trading performance and value of the trust’s shopping centres.

As at 1129 AEDT, CFS Retail Property Trust shares were up 0.5c to $1.935.