egolinews.com

Shares continued to retreat in the afternoon, down more than 2.2% by the close, and 7.7% in the last three weeks. The market lost ground following persistent weakness from its internationals peers, with many heading for their worst month since February 2009.

The major sell-off continued in resource and energy stocks although banks also contributed to the losses.

The market closed at its lowest level since the last week of November.

At the end of the day, the All Ords was down 100.8 to 4,596.9, while the ASX/200 fell 103.7 to 4,569.6. About 3.6 billion shares worth around $7.3 billion had changed hands.

CBA shed $1.87, or 3.4% to $53.23 to be the major drag among the big four banks.

Westpac lost 72c, or 2.9% to $23.86, while ANZ and NAB were 1.9% and 1.2% below the gain line.

The Banks and Financials sector lost 2%.

Macquarie Group slid 86c to $50.16 as Charter Hall confirmed it was in discussions with the investment bank regrading the acquisition of parts of its real estate funds management platform.

Charter Hall shares rose 0.5c to 66c to be one of the few stocks within the Property Trusts sector in the black. 

Goodman Group and Mirvac fell 4.1% and 3% to 58.5c and $1.455. 

The sector weakened 1.2%.

BHP Billiton and Rio Tinto took a combined 23 points off the broader indices to be trading at $39.40 and $68.00 respectively. Rio Tinto has had over 15% wiped off its value since recent highs of $80.14 on 11 January.

The Materials and Resources sector fell 3.4%.

This morning, BHP said it would invest $2.15 billion into growing its Western Australia iron ore business, representing the start of the company’s Rapid Growth Project 6 project, aimed at increasing BHP’s iron ore capacity to 240 million tonnes by 2013. The company also announced it had reached an agreement to buy Canadian potash miner, Athabasca Potash Inc. for $357 million.

Fortescue fell 2.4% to $4.53; it was one of the few stocks to improve its position from lunch.

Meanwhile, steelmakers Bluescope and Onesteel shed 2.6% and 3.4% to $2.62 and $3.11.

Newcrest dipped 60c to $31.53 as UBS cuts its target price on the gold producer.

The price of the precious metal reached its lowest level in almost three months in early trade last night before recovering most of the fall.  Lihir lost 12c to $2.77.

Chemicals companies Orica and Incitec Pivot had lost most of the ground made yesterday to both be down 3.4%.

The Energy sector was led 1.9% lower by consistent falls among the majors and even sharper declines from coal stocks.

Woodside shed $1.35, or 3.1% to $42.33, while Oil Search fell 10c, or 1.9% to $5.26.

AWE lost 14c, or 5.1% to $2.62 after downgrading it FY10 production forecast as a result of an extended project shutdown.

Origin shed 8c, or 0.5% to $16.02. The company reported a 16% increase in revenue for the quarter to 31 December over the previous corresponding period.

Whitehaven continued its slide after UBS downgraded its rating on the coalminer’s shares to ‘neutral’ due to recent share price appreciation, while also upgrading its target price. Whitehaven shares were down 27c, or 5.7% to $4.43.

Coal stocks Centennial and Aquila were 3.9% and 5.7% in the red.

Oilfield engineering firm WorleyParsons was up 10c at $23.59 after securing, alongside JV partner Transfield Services, a $700 million contract to supply brownfield project and maintenance services to Woodside.

Transfield shed 10c to $3.58 as the Industrials sector weakened 2.2%.

Asciano and CSR fell 2.3% and 2.9% to $1.71 and $1.825.

Yesterday, it was revealed the airline industry experienced its largest drop in passenger traffic since the end of World War II in 2009. However, expectations are for a recovery in 2010.

Virgin and Qantas slid 0.9% and 1%, while Air New Zealand rallied 8% to $1.01.

Programmed Maintenance services lost over 10% on a profit downgrade as less companies take preventative painting measures.

The Consumer Staples sector weakened 1.6%. Wesfarmers shed 74c, or 2.6% to $27.51.

Woolworths edged 33c lower to $25.86 after announcing yesterday it would introduce permanent price reductions on 3,500 packaged grocery products.

Beverage maker Coca-Cola Amatil was flat. Foster’s gained 2c to $5.34 after announcing the appointment of John Pollaers to the role of managing director, Carlton and United Breweries.

Retailers and media stocks led the Consumer Discretionary sector 1.4% lower.

Harvey Norman and JB Hi-Fi fell 3.9% and 4% to $3.68 and $20.17, while Ten Network dropped 2.2% to $1.535.

Gamer Crown gained 10c to $7.76, while Tabcorp lost 20c, or 2.8% to $7.03.

An 8c fall to $3.34 from Telstra saw the Telecommunications sector 2.2% lower.

Among the Healthcare sector, CSL rallied 33c, or 1.1% to $31.18. Yesterday the formerly government-owned Commonwealth Serum Laboratories announced it would team up with Patrys to develop some of their cancer treatment therapies.

Patrys, meanwhile, lost 17.5% today.

The broader sector was down 0.2%.

The Utilities sector gained 0.2% to be the only sector in positive territory. AGL Energy and Prime Infrastructure added 0.4% and 4.8% respectively.

Around the region, the Nikkei 225 lost 158.7 to 10,255.6, while the Straits Times Index shed 16.4 to 2,741.3. Meanwhile, the NZSE50 fell 27.8 to 3,155.8. The Hang Seng lost 158.2 to 20,198.2

Spot gold was trading at US$1,081.82 per ounce, and the Aussie was buying US$0.8908.  

---

Origin 2Q output and revenue increases

Origin Energy reported a 2% increase in production and a 16% increase in sales revenue for the quarter to December 2009 compared with the previous corresponding period. The company said the increases were primarily due to gas sales from storage, increased production from New Zealand assets, and higher liquids prices.

At the bell, Origin shares were down 8c to $16.02.

AWE downgrades FY production guidance
AWE downgraded its production guidance for FY10 to 6.2mmboe, citing a further extension of the BassGas maintenance shutdown and work-over project in addition to some production decline in the onshore Perth Basin. The company’s previous guidance was 6.5 million boe.

At the finish, AWE shares were down 14c to $2.62.

CHC in talks to buy MQG real estate platform
Charter Hall Group confirmed that it was in discussions with Macquarie Group regrading the acquisition of parts the latter’s real estate funds management platform. The announcement was in response to recent media speculation.

At the end of the day, Macquarie Group shares were down 86c to $50.16, Charter Hall Group securities added 0.5c to 66c and Macquarie Office Trust securities were unchanged at 29.5c.

ESG expects increase in production rates
Eastern Star Gas expects gas production rates to increase significantly after dewatering of, and gas production from, a tri-lateral pilot was temporarily suspended during January. The suspension was owing to access road restrictions preventing mechanical adjustments to handle rapidly climbing gas production, the company said.

At the close, Eastern Star Gas shares were down 4c to 77.5c.

Macarthur updates market on transactions
Macarthur Coal has updated the market on its bid for Gloucester Coal and other conditional acquisitions of assets from Noble Group. The company said it expects to hold a shareholder meeting in relation to transactions in mid April 2010.

At the end of the session, Gloucester Coal shares were down 27c to $8.25, while Macarthur Coal shares dropped 81c to $9.45.

ERA FY profit jumps 23%
Energy Resources of Australia reported NPAT for year ended 31 December 2009 was $272.6 million, up 23% on the previous year. The company said revenue from both sales of uranium and continuing operations were up 55% in the same period to $767.8 million and $780.6 million respectively. 

At the bell, ERA shares were up 7c to $20.95.

AIA completes insto offer
Auckland International Airport completed the institutional entitlement offer component of its 1 for 16 fully underwritten entitlement offer.  The offer was announced on 27 January 2010, and is expected to raise a total of approximately NZ$126.4 million ($99.4 million).

Auckland International Airport shares remain halted at $1.465.

PRG downgrades guidance
Programmed Maintenance Services downgraded its FY10 EBITA forecast from $63 million to a range of $57 million to $60 million citing lower than expected discretionary or expansionary works being committed by customers in painting operations across Australia, New Zealand and UK. In addition the company said the Maritime Union of Australia is pursuing a wage claim that is not “acceptable” to its business or any clients.

At the finish, Programmed Maintenance shares were trading down 38c to $3.28.

Transfield, Worley JV secures $700m contract
Transfield Services and oilfield engineering firm WorleyParsons said their 50/50 joint venture Transfield Worley Services had secured a $700 million contract to supply brownfield project and maintenance services to Woodside Petroleum Limited’s (WPL) onshore LNG facilities in Western Australia.

At the close, WorleyParsons shares were up 10c to $23.59 and Transfield Services shares were down 10c to $3.58.

BHP buys Canadian potash miner for $357m
BHP Billiton said it had reached an agreement to buy Canadian potash miner, Athabasca Potash Inc (“API”). The Aussie miner said it would acquire all the shares of the company for C$8.35 per share (A$8.75), for a total consideration of C$341 million (A$357 million).

At the end of the day, BHP Billiton shares were down $1.30 to $39.40.

BHP invests $2.15bn into WA iron ore
In another announcement Friday morning by the big Australian, BHP Billiton said it would invest $2.15 billion into growing its Western Australia iron ore business. The money represents the start for the company’s Rapid Growth Project 6 (RGP6) project, aimed at increasing BHP’s iron ore capacity to 240 million tonnes by 2013.

Origin Energy Limited (ORG) reported a 2% increase in production and a 16% increase in sales revenue for the quarter to December 2009 compared with the previous corresponding period (“pcp”). The company said the increases were primarily due to gas sales from storage, increased production from New Zealand assets, and higher liquids prices.

Origin said production and revenue for the December quarter were 7% and 10% lower respectively than the previous quarter.

Executive director, Finance and Strategy, Karen Moses, said the exploration and production business delivered production in line with guidance together with substantial progress across new developments such as Kupe and Talinga, drilling success in the Bass and Perth basins, agreement to acquire additional interests in the Otway Basin, and the acquisition of new opportunities in south east Asia.

Origin said production and sales revenue for the half year to December 2009 were 14% and 9% respectively lower than in the pcp. The company attributed the decrease to the 50% dilution of Origin’s share of CSG following the Australia Pacific LNG transaction together with lower contractual off-takes during the period and natural field decline.

“Production from the areas now held through Australia Pacific LNG joint venture grew by 24% when compared with the prior Half Year,” Ms Moses said.

“Further developments regarding the Australia Pacific LNG project included the awarding of three significant contracts for drilling and design, engineering, procurement and construction activities, as well as lodgement of the Project’s Environmental Impact Statement.”

As at 1427 AEDT, Origin shares were down 7c to $16.03.

AWE Limited (AWE) downgraded its production guidance for FY10 to 6.2 million barrels of oil equivalent, citing a further extension of the BassGas maintenance shutdown and work-over project in addition to some production decline in the onshore Perth Basin. The company’s previous guidance was 6.5 million boe.

AWE made the announcement in its December quarterly report, which revealed a 22% drop in production compared to the previous month and a 31% reduction on a year earlier to 1.46 million boe.

The company said revenue of $81 million for the quarter, down 26% on the previous quarter and 42% below the prior corresponding period.

AWE said Bass Basin, New Zealand, East Java in Indonesia and Yemen would all be focal points for exploration over the next 6 to 12 months.

The company said its balance sheet remains strong with cash reserves of $296 million.

“When combined with the recent refinancing, this provides flexibility and certainty of funding, particularly if global financial markets deteriorate again,” AWE said.

”It will support any development activities resulting from success in AWE exploration campaign, as well as underpinning the pursuit of other growth opportunities.”

As at 1334 AEDT, AWE shares were down 13c to $3.63.

The Aussie market had lost 1.6% by noon Friday after a weak lead from global markets, with many heading for their worst month since the end of the bear market. The major sell-off in resource and energy stocks continued on a morning of broad-based losses.  

At midday, the All Ords was down 75.2 to 4,622.5, while the ASX/200 fell 75.2 to 4,598.1. About 1.7 billion shares worth around $3.7 billion had changed hands.

CBA shed $1.32, or 2.4% to $53.78 to be the major drag among the big four banks.

Westpac lost 46c, or 1.9% to $24.12, while ANZ and NAB were 1.3% and 0.6% below the gain line.

The Banks and Financials sector lost 1.3%.

Macquarie Group slid 56c to $50.46 as Charter Hall confirmed it was in discussions with the investment bank regrading the acquisition of parts of its real estate funds management platform.

Charter Hall shares rose 1c to 66.5c to be one of the few stocks within the Property Trusts sector in the black. 

Goodman Group and Mirvac fell 2.5% and 2.3% to 59.5c and $1.465. 

The sector weakened 0.9%.

BHP Billiton and Rio Tinto took a combined 17 points off the broader indices to be trading at $39.75 and $68.80 respectively. The Materials and Resources sector fell 2.7%.

This morning, BHP said it would invest $2.15 billion into growing its Western Australia iron ore business, representing the start of the company’s Rapid Growth Project 6 project, aimed at increasing BHP’s iron ore capacity to 240 million tonnes by 2013. The company also announced it had reached an agreement to buy Canadian potash miner, Athabasca Potash Inc. for $357 million.

Metals prices dropped overnight on the LME, including a 4.6% fall in the price of copper.

Fortescue fell 4.1% to $4.45, while steelmakers Bluescope and Onesteel shed 2.2% and 3.7% to $2.63 and $3.10.

Newcrest dipped 31c to $31.82 as UBS cuts its target price on the nation’s largest gold producer.

The price of the precious metal reached its lowest level in almost three months in early trade last night before recovering most of the fall.  Lihir lost 8c to $2.81.

Chemicals companies Orica and Incitec Pivot had lost most of the ground made yesterday to be trading at $24.10 and $3.37 respectively.

The Energy sector was led 2.1% lower by consistent falls among the major and even sharper declines from coal stocks.

Woodside shed $1.14, or 2.6% to $42.54, while Oil Search fell 13c, or 2.4% to $5.23.

AWE lost 13c, or 4.7% to $2.63 after downgrading it FY10 production forecast as a result of an extended project shutdown.

Whitehaven continued its slide after UBS downgraded its rating on the coalminer’s shares to ‘neutral’ due to recent share price appreciation, while also upgrading its target price. Whitehaven shares were down 23c, or 4.9% to $4.47.

Coal stocks Centennial, Riversdale and Aquila were between 4.2% and 5.5% in the red.

Oilfield engineering firm WorleyParsons was relatively flat at $23.53 after securing, alongside JV partner Transfield Services, a $700 million contract to supply brownfield project and maintenance services to Woodside.

Transfield shed 7c to $3.61 as the Industrials sector weakened 1.6%.

Asciano and CSR fell 4% and 2.9% to $1.68 and $1.825.

Yesterday, it was revealed the airline industry experienced its largest drop in passenger traffic since the end of World War II in 2009. However, expectations are for a recovery in 2010.

Virgin and Qantas slid 0.9% and 0.7%, while Air New Zealand rallied 7% to $1.00.

The Consumer Staples sector weakened 0.5%. Wesfarmers shed 1.1% to $27.95.

Woolworths edged 5c lower to $26.14 after announcing yesterday it would introduce permanent price reductions on 3500 packaged grocery products.

Beverage makers Coca-Cola Amatil and Foster’s gained 7c and 5c to $11.00 and $5.37, with latter announcing the appointment of John Pollaers to the role of managing director, Carlton and United Breweries.

Retailers and media stocks led the Consumer Discretionary sector 1% lower.

Harvey Norman and JB Hi-Fi fell 3.4% and 3.6% to $3.70 and $20.24, while Ten Network dropped 4.8% to $1.495.

Gamer Crown gained 9c to $7.75.

A 6c fall to $3.36 saw the Telecommunications sector 2.2% lower.

Around the region, the Nikkei 225 lost 189.2 to 10,225.1, while the Straits Times Index shed 21.1 to 2,736.6. Meanwhile, the NZSE50 fell 27.8 to 3,155.8.

Spot gold was trading at US$1,082.90 per ounce, and the Aussie was buying US$0.8908.  

---

CHC in talks to buy MQG real estate platform
Charter Hall Group confirmed that it was in discussions with Macquarie Group regrading the acquisition of parts the latter’s real estate funds management platform. The announcement was in response to recent media speculation.

At noon, Macquarie Group shares were down 58c to $50.44, Charter Hall Group securities added 1.5c to 67c and Macquarie Office Trust securities added 1c to 30.5c.

ESG expects increase in production rates
Eastern Star Gas expects gas production rates to increase significantly after dewatering of, and gas production from, a tri-lateral pilot was temporarily suspended during January. The suspension was owing to access road restrictions preventing mechanical adjustments to handle rapidly climbing gas production, the company said.

Half way through the day, Eastern Star Gas shares were down 1.5c to 80c.

Macarthur updates market on transactions
Macarthur Coal has updated the market on its bid for Gloucester Coal and other conditional acquisitions of assets from Noble Group. The company said it expects to hold a shareholder meeting in relation to transactions in mid April 2010.

At lunchtime, Gloucester Coal shares were down 12c to $8.40, while Macarthur Coal shares dropped 70c, or 6.8% to $9.56.

ERA FY profit jumps 23%
Energy Resources of Australia reported NPAT for year ended 31 December 2009 was $272.6 million, up 23% on the previous year. The company said revenue from both sales of uranium and continuing operations were up 55% in the same period to $767.8 million and $780.6 million respectively. 

As at 1016 AEDT, ERA shares were down 10c to $20.78.

AIA completes insto offer
Auckland International Airport completed the institutional entitlement offer component of its 1 for 16 fully underwritten entitlement offer.  The offer was announced on 27 January 2010, and is expected to raise a total of approximately NZ$126.4 million ($99.4 million).

Auckland International Airport shares remain halted at $1.465.

PRG downgrades guidance
Programmed Maintenance Services downgraded its FY10 EBITA forecast from $63 million to a range of $57 million to $60 million citing lower than expected discretionary or expansionary works being committed by customers in painting operations across Australia, New Zealand and UK. In addition the company said the Maritime Union of Australia is pursuing a wage claim that is not “acceptable” to its business or any clients.

At midday, Programmed Maintenance shares were trading down 39c to $3.27.

Transfield, Worley JV secures $700m contract
Transfield Services and oilfield engineering firm WorleyParsons said their 50/50 joint venture Transfield Worley Services had secured a $700 million contract to supply brownfield project and maintenance services to Woodside Petroleum Limited’s (WPL) onshore LNG facilities in Western Australia.

Half way through the day, WorleyParsons shares were down 8c to $23.41 and Transfield Services shares were down 7c to $3.61.

BHP buys Canadian potash miner for $357m
BHP Billiton said it had reached an agreement to buy Canadian potash miner, Athabasca Potash Inc (“API”). The Aussie miner said it would acquire all the shares of the company for C$8.35 per share (A$8.75), for a total consideration of C$341 million (A$357 million).

By noon, BHP Billiton shares were down 98c to $39.72.

BHP invests $2.15bn into WA iron ore
In another announcement Friday morning by the big Australian, BHP Billiton said it would invest $2.15 billion into growing its Western Australia iron ore business. The money represents the start for the company’s Rapid Growth Project 6 (RGP6) project, aimed at increasing BHP’s iron ore capacity to 240 million tonnes by 2013.

Charter Hall Group (CHC) confirmed that it was in discussions with Macquarie Group Limited (MQG) regrading the acquisition of parts of the latter’s real estate funds management platform. The announcement was in response to recent media speculation.

Both companies stressed that the potential acquisition was incomplete and that there was no certainty that any transaction would proceed.

Macquarie Office Trust (MOF) noted the announcement made today by Macquarie and Charter Hall and said it could potentially include the manager of Macquarie Office Trust.

At 1115 AEDT, Macquarie Group shares were down 64c to $50.38, Charter Hall Group securities added 2.5c to 68c and Macquarie Office Trust securities added 0.5c to 30c.

Eastern Star Gas Limited (ESG) expects gas production rates to increase significantly after dewatering of, and gas production from, a tri-lateral pilot was temporarily suspended during January. The suspension was owing to access road restrictions preventing mechanical adjustments to handle rapidly climbing gas production, the company said.

The company said about one month after commencement of dewatering of the Bibblewindi West tri-lateral production pilot, gas production from the pilot exceeded two million standard cubic feet per day from the Namoi coal seam within the Maules Creek Formation.

ESG said the outstanding gas production was achieved while water production from the pilot exceeded 3,500 barrels per day and with in excess of 550 metres of water pressure still on the coal.

The company said it is undertaking a programme of work with the objective of progressively increasing 2P coal seam gas reserves of the Narrabri Coal Seam Gas Project to support major new gas market initiatives.

As at 1101 AEDT, Eastern Star Gas shares were down 0.5c to 81c.