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The Aussie market gave up solid gains to lunch, drifting lower through the afternoon, though still finished slightly higher for the day, and 0.7% higher for the week. Investors locked in gains for the banks, though the financial stocks still recovered much of yesterday’s losses, while materials weighed on the sector.

In economic news, a survey by the Australian Industry Group and Housing Industry Association revealed the building industry remained at a level of contraction for the second consecutive month. The index rose 1.7 points to 49.3 in December, below the 50 point level that separates growth from contraction.

At the close, the All Ords rose 11.7 to 4,942.2, while the ASX/200 gained 12.7 to 4,912.1. About 1.9 billion shares worth around $3.1 billion had changed hands.

The Banks and Financials sector added the most points to the index to be 0.6% higher by the end of the day.

CBA outperformed the other banks finishing 72c higher at $56.16.

ANZ and Westpac were 0.6% and 0.4% above the gain line, while NAB lost 9c to $26.90.

Macquarie added 41c to $48.90.

Among the insurers, QBE led the way having gained 27c, or 1.1% to $24.77.

Bourse operator ASX put on 75c, or 2.2% to $35.31.

Materials and Resources weakened, however not as dramatically as the drop in base metals prices overnight. Zinc, lead and nickel prices fell between 3% and 4.1% on the London Metals Exchange.

The sector was 0.6% lower.

BHP Billiton finished down 15c or 0.3% to $43.62, while Rio Tinto was just 1c higher at $79.01.

Iron ore producer Fortescue ended a volatile week down 11c, or 2.1% to $5.06, while explosives and fertiliser company Incitec Pivot dropped 7c to $3.71.

Gold miners tracked the price of the precious metal lower, which was a result of a stronger greenback, as well as the exiting of positions and the booking of profits ahead of the release of US jobs data on Friday.

Newcrest and Lihir lost 2.6% and 1.5% to $36.20 and $3.36 respectively.

The Energy sector put on 0.2% despite the price of crude dipping below US$83 a barrel overnight.

Origin and Coal & Allied put on 11c and $3.20 to $17.66 and $85.30, while WorleyParsons rallied 41c, or 1.4% to $30.46.

Woodside shed 20c, or 0.4% to $48.70.

The major players led Consumer Staples 1.3% into the black. Wesfarmers gained 76c, or 2.5% to $31.46 and Woolworths rose 24c, or 0.9% to $28.09.

Billabong jumped 58c, or 5.3% to $11.55 as the Consumer Discretionary finished flat.

JB Hi-Fi advanced 1.5% to $21.68. Harvey Norman bucked the trend among retailers, shedding 7c to $3.88.

Major media stocks and gamers were relatively flat, except Fairfax which weakened 2.5c to $1.72 and Aristocrat, down 7c, or 1.7% to $4.05.

Property Trusts put on 0.2% following broad based gains among the majors. Westfield added 7c to $12.71 and Stockland rallied 6c, or 1.5% to $4.06.

The Industrial stocks were a broad mix of gainers and losers, leaving the sector up just 0.1%.

Qantas rose 6c to $2.96, while Boart Longyear rallied 2.6% to 39.5c.

Brambles gained just 2c to $7.04 as the company announced three appointments to its senior management team.

A 1.8% gain to $3.38 from Telstra saw the Telecommunications sector 1.8% higher.

Around the region, the Nikkei 225 advanced 61.2 to 10,742.8, while the Straits Times Index lost 0.2 to 2,913.1. Meanwhile, the NZSE50 added 25.4 to 3,310.2 and the Hang Seng shed 36.8 to 22,232.6.

Spot gold was trading at US$1,124.65 per ounce, and the Aussie was buying US$0.9153. 

Newcrest Mining Limited (NCM) said the New South Wales government has granted planning approval to the company’s subsidiary Cadia Holdings Pty Limited for what would be Australia’s largest underground mine. The gold miner said the Cadia East project near Orange was now expected to be considered by the Newcrest board around the end of the first quarter in 2010 after remaining regulatory approvals have been finalised.

Newcrest general manager Cadia Valley Operations, Tony McPaul, said if approved by the board, the project would secure the company’s future in the region for at least the next 20 years.

“It will be Newcrest’s first panel cave, building on our expertise in underground mining,” Mr McPaul said.

“It will mean significant ongoing direct and indirect employment and economic activity for the region. At the peak of construction approximately 1,300 employees will be required.”

Newcrest said the estimated capital cost of the project is expected to be nearly $2 billion.

As at 1431 AEDT, Newcrest shares were down 88c to $36.27.

The Aussie market followed a positive lead from Wall Street as recent economic data and analyst comments buoyed investors. Heavyweight financials and consumer staples were the strongest performers, while the resource sector had lost ground made yesterday.  

In economic news, a survey by the Australian Industry Group and Housing Industry Association revealed the building industry remained at a level of contraction for the second consecutive month. The index rose 1.7 points to 49.3 in December, below the 50 point level that separates growth from contraction.

At midday, the All Ords rose 25.5 to 4,956.0, while the ASX/200 gained 29.5 to 4,928.9. About 960 million shares worth around $1.3 billion had changed hands.

The Banks and Financials sector added the most points to the index to be 1% higher by lunch.

ANZ, Westpac and CBA were between 1.2% and 1.4% higher to be trading at $22.38, $25.39 and $56.22 respectively.

NAB was relatively flat at $27.05, while QBE led insurers higher having gained 33c, or 1.3% to $24.83.

Materials and Resources weakened, however not as dramatically as the drop in base metals prices overnight. Zinc, lead and nickel prices fell between 3% and 4.1% on the London Metals Exchange.

The sector was 0.2% lower.

BHP Billiton and Rio Tinto mirrored their share price movement in the UK overnight. BHP was down 7c to $43.70, while Rio had added 45c to $79.45 by noon.

Iron ore producer Fortescue shed 5c, or 1% to $5.12, while explosives and fertiliser company Incitec Pivot dropped 7c to $3.71.

Gold miners tracked the price of the precious metal lower, which was a result of a stronger greenback, as well as the exiting of positions and the booking of profits ahead of the release of US jobs data on Friday.

Newcrest and Lihir lost 1.3% and 0.9% to $36.66 and $3.38 respectively.

The Energy sector put on 0.6% despite the price of crude dipped below US$83 a barrel overnight.

Origin and Coal & Allied put on 1.8% and 1.5% to $17.86 and $83.30, while WorleyParsons rallied 73c, or 2.4% to $30.78.

Woodside was slightly lower at $48.86.

The major players led Consumer Staples 1.4% into the black. Wesfarmers gained 78c, or 2.5% to $31.48 and Woolworths rose 25c, or 0.9% to $28.10.

Coca-Cola Amatil jumped 2.3% to $11.37.

A strong morning for most of the retailers helped the Consumer Discretionary sector to a 0.3% gain. Positive data out of the US and locally has been the main contributor to recent strength among retail stocks both home and abroad. 

Billabong climbed 65c, or 5.9% to $11.62, while JB Hi-Fi advanced 1.5% to $21.66. Harvey Norman bucked the trend, shedding 4c to $3.91.

Major gamers and media stocks were mainly below the line, including Fairfax which weakened 1.5c to $1.73.

Property Trusts put on 0.9% following broad based gain among the majors. Westfield added 14c to $12.78.

The majority of the heavyweight Industrial stocks were flat, leaving the sector on the line by lunch.

Qantas rose 3c to $2.93, while Boart Longyear rallied 2.6% to 39.5c.

Brambles dipped 4c to $6.98 as the company announced three appointments to its senior management team.

A 1.2% gain to $3.36 from Telstra saw the Telecommunications sector 1.5% higher.

Around the region, the Nikkei 225 advanced 109.7 to 10,791.4, while the Straits Times Index gained 11.4 to 2,924.6. Meanwhile, the NZSE50 added 21.9 to 3,306.7.

Spot gold was trading at US$1,126.20 per ounce, and the Aussie was buying US$0.9177.  

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Toll road operator and owner ConnectEast Group (CEU) reported toll revenue on its EastLink motorway in Melbourne jumped 21.5% in December from the previous corresponding month. Each day the motorway, on average, earnt over $548,746 from 168,007 car trips, itself up 16% from December 2008.

Brambles Limited (BXB) announced new position on its Executive Leadership Team. The support services provider said Kevin Shuba, Jim Ritchie and Peter Mackie would take on the roles of Group Senior Vice President & Customer Development Officer, Group President of CHEP Americas and Group President of CHEP Asia-Pacific respectively. Brambles said Mr Ritchie and Mr Shuba would commence their new roles on 15 January 2010, while Mr Mackie would commence following an adequate handover process of his current position as acting Group President of CHEP Europe, Middle East & Africa. Mr Mackie is also currently President of CHEP Europe.