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Asciano Limited (AIO) announced that it has executed a long term, take-or-pay contract with Macarthur Coal Limited (MCC) for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland commencing on 1 November 2010. Asciano said the agreement would generate revenues of approximately $250 million for the company.

Asciano said Macarthur related entities are now its largest coal haulage customer in Queensland with annualised tonnes in excess of 10 million.

CEO Mark Rowsthorn said the company had achieved its goal of securing contracts totalling 30 million tonnes by the end of 2010 and added that every contract signed to date would deliver returns at or above its internal benchmarks.

“With our first ten train sets in Queensland contracted, Asciano will now proceed to purchasing further train sets to support its ongoing growth in this extremely important market”, Mr Rowsthorn said.

“The coal haulage opportunities presented by the northern and southern missing link infrastructure projects, as well as the development of the Surat and Galilee basins, are clearly next on our agenda.”

At the close of trade Wednesday, Asciano shares were trading at $1.75, while Macarthur Coal shares were trading at $10.00.

Tabcorp Holdings Limited (TAH) said its net profit for the six months to 31 December 2009 fell 2% to $257.9 million on the back of a poor performance from its Queensland casinos after the government in that state slugged the company with extra taxes, while new race fields charges also took a bite out of earnings.

CEO Elmer Funke Kupper said the company would turn its attention to the year ahead, an uncertain one for the company.

“2010 is an important year for the company, particularly in wagering. Greater clarity will emerge in the regulatory environment and we expect that the Victorian Government will award the post-2012 Victorian wagering licence," Mr Funke Kupper said.

”These events will allow us to chart the future direction of the company with greater clarity.”

Mr Funke Kupper said the company expected conditions to remain somewhat uncertain for the remainder of the 2010 as the government winds back stimulus measures.

”In this environment, we will maintain our current focus on operational performance and deliver the key investment programs we have under way," he said.

Looking at the results for the six months, the company noted a nearly 11% fall in EBIT revenue.

Star City Casino in Sydney produced a strong result as it continues with redevelopment. Revenue at Star City climbed 5.2%.

Queensland gaming revenues retreated 1%, while the casino was hit $13 million after the government hiked gaming taxes.

Wagering revenue grew strongly, especially in fixed odds betting, up 23.3%, which was supported by very solid online turnover growth, including Luxbet.com, up 37.8%.

Across the whole company reported net revenues grew 2.1% to $2,180.7 million.

Chairman John Story struck a cautionary tone in commenting on the results for the six months to 31 December.

“Overall, this is a sound result in variable economic conditions and a difficult regulatory environment,” Mr Story said.

”The company is progressing initiatives and investments in each of the operating divisions that are showing promise and provide a good foundation for growth in the coming years.”

The Tabcorp board have declared a dividend of 30c per share.

At the close Wednesday, Tabcorp shares were trading at $7.05 each.

Tabcorp Holdings Limited (TAH) said its net profit for the six months to 31 December 2009 fell 2% to $257.9 million on the back of a poor performance from its Queensland casinos after the government in that state slugged the company with extra taxes, while new race fields charges also took a bite out of earnings.

CEO Elmer Funke Kupper said the company would turn its attention to the year ahead, an uncertain one for the company.

“2010 is an important year for the company, particularly in wagering. Greater clarity will emerge in the regulatory environment and we expect that the Victorian Government will award the post-2012 Victorian wagering licence," Mr Funke Kupper said.

”These events will allow us to chart the future direction of the company with greater clarity.”

Mr Funke Kupper said the company expected conditions to remain somewhat uncertain for the remainder of the 2010 as the government winds back stimulus measures.

”In this environment, we will maintain our current focus on operational performance and deliver the key investment programs we have under way," he said.

Looking at the results for the six months, the company noted a nearly 11% fall in EBIT revenue.

Star City Casino in Sydney produced a strong result as it continues with redevelopment. Revenue at Star City climbed 5.2%.

Queensland gaming revenues retreated 1%, while the casino was hit $13 million after the government hiked gaming taxes.

Wagering revenue grew strongly, especially in fixed odds betting, up 23.3%, which was supported by very solid online turnover growth, including Luxbet.com, up 37.8%.

Across the whole company reported net revenues grew 2.1% to $2,180.7 million.

Chairman John Story struck a cautionary tone in commenting on the results for the six months to 31 December.

“Overall, this is a sound result in variable economic conditions and a difficult regulatory environment,” Mr Story said.

”The company is progressing initiatives and investments in each of the operating divisions that are showing promise and provide a good foundation for growth in the coming years.”

The Tabcorp board have declared a dividend of 30c per share.

At the close Wednesday, Tabcorp shares were trading at $7.05 each.

Wall street ended its two-day rally Wednesday as the bulls lost momentum and a disappointing reading on the services sector was released. Concerns regarding Toyota’s situation also weighed on investors minds. 

In employment news, ADP reported that private sector employers cut 22,000 jobs in January. Forecasts were for a loss of 30,000 jobs after a revised 61,000 jobs were cut the previous month.

However, Challenger, Gray & Christmas said announced layoffs in January rose to a five-month high of over 71,000.

On Friday the government will release the January jobs reading.

Meanwhile, the Institute for Supply Management's services sector index rose from 49.8 in December to 50.5 in January.

The Dow Jones lost 26.30 points, or 0.26%, to 10,270.55, the S&P's 500 slid 6.04 points, or 0.55%, to 1,097.28 and the NASDAQ advanced 0.85 points, or 0.04%, to 2,190.91.

Wells Fargo lost the most ground among the major financials to be 2.1% lower at the close.

Citigroup shed 1.2%, while American Express fell 1.8%.

Visa slid 0.6% ahead of the release of the credit card company’s results after the close.

Mastercard lost 2% as it prepares to release quarterly results on Thursday. Revenue is expected to be 6% higher than a year ago, while EPS is expected to have increased from US$1.87 a share to US$2.80 in the same period.

Pharmaceutical Pfizer dropped 2.3% after missing quarterly earnings estimates and forecasting earnings for the year that fell short of expectations.

Merck & Co and Johnson & Johnson shed 2.1% and 0.6%.

News Corp rallied 7.1% as it beat quarterly earnings estimates, while Time Warner fell 2.1% despite better than expected quarterly figures.

Barnes & Noble gained 1.8% after an investor increased his stake in the bookseller to 37% and the opinion by some that the stock is relatively cheap.

Energy heavyweights Chevron and Exxon Mobil lost 1.7% and 0.5% following a drop in the price of crude and the release of BP’s disappointing fourth quarter refining margins.

NYMEX light crude oil for March delivery fell US25c to US$76.98 a barrel.

COMEX gold for April delivery fell US$6 to US$1,111.40 an ounce.

European Markets

European stocks snapped a three-day rally on concerns regarding the budget deficits of Greece, Spain and Portugal. A drop in metals prices led miners lower.

The benchmark UK FTSE 100 lost 30.16 points, or 0.57% to 5,253.15. The French CAC40 shed 18.66, or 0.49% to 3,793.47, while Germany’s DAX fell 37.57, or 0.66% to 5,672.09.

Banks were among the worst performers. In Germany, Deutsche Bank and Commerzbank slid 1.8% and 1.5%, while France’s BNP Paribas and Societe Generale lost 2.5% and 2.4%.

It was a mixed day for the UK banks, however. Royal Bank of Scotland and Standard Chartered shed 2.1% and 1.3%.

Barclays and Lloyds added 2% and 1.4%. Insurer Standard Life rose 3.5% after beating full-year sales estimates.

Heavyweight miners Antofagasta, Anglo American and Xstrata were between 2.3% and 3% lower.

Aussie peers BHP Billiton and Rio Tinto lost 0.8% and 1.4%.

Pharmaceuticals struggled after disappointing sales resulted in Roche missing full-year profit forecasts. GlaxoSmithKline weakened 0.7%.

Daimler put on 1.7% on reports the automaker could release quarterly results much higher than consensus estimates.

Volkswagen advanced 2% on a 41% increase in monthly sales at its US division.

Japanese Markets

Japan’s Nikkei was boosted by strong data out of the US, sending exporters higher. However, gains were capped by a fall in Toyoto shares.

The Nikkei 225 rose 33.24, or 0.32% to 10,404.33.

Toyota slumped 5.7% as the automaker revealed the expanding recall in a drop in US auto sales to its lowest level in a decade.

Honda and Nissan gained 2.3% and 1.2%, with the latter announcing a 16% rise in US sales during January.

Electronics company Canon and Olympus put on 1.4% and 3%.

Oil refiner Idemitsu Kosan Co spiked 9.9% and Nippon Oil jumped 4.5% on a rise in the price of crude.

Copper producer Furukawa Co. surged 8.1% after raising its full-year earnings forecast, while the nation’s largest copper miner Nippon Mining Holdings surged 4.6%.

Clothing retailer Fast Retailing fell 3.1% after fall in monthly sales at its Uniqlo chain.

Hong Kong Markets

The Hang Seng put in its best one-day gain in more than two months. The market sentiment was positive as the Chinese government loosened lending restrictions, US home sales increased and companies in Hong Kong, including Cnooc and Esprit, posted better than expected results.

The Hang Seng rallied 449.90, or 2.22% to 20,722.08.

Off-shore oil producer, Cnooc raised its oil production forecast by as much as 28% for the year ahead, sending its share surging 9.4%.

Meanwhile, clothing brand Esprit rallied 7.9% after saying revenue in the second half of last year spiked nearly 10% to $1.2 billion.

Foxconn, the world’s largest third-party maker of mobile phones climbed 5.6%.

Cathay Pacific, Hong Kong’s airline, put on 2.8% after rival Singapore Airlines posted its first profit in three quarters.

Aluminium Corp of China and Jiangxi Copper, the largest producers in China of their respective metals, rose 2.6% and 2.8% respectively.

Melco International Development rose 5% after its Macau casino, a joint venture with Jamie Packer’s crown, said earnings surged in January on increased market share. Melco International put on 2.9%.

The banks also climbed, Bank of China rallied 2.4%. Heavyweight lender ICBC put on 2.3%.

HSBC was up 1.4%.

Wall street ended its two-day rally Wednesday as the bulls lost momentum and a disappointing reading on the services sector was released. Concerns regarding Toyota’s situation also weighed on investors minds. 

In employment news, ADP reported that private sector employers cut 22,000 jobs in January. Forecasts were for a loss of 30,000 jobs after a revised 61,000 jobs were cut the previous month.

However, Challenger, Gray & Christmas said announced layoffs in January rose to a five-month high of over 71,000.

On Friday the government will release the January jobs reading.

Meanwhile, the Institute for Supply Management's services sector index rose from 49.8 in December to 50.5 in January.

The Dow Jones lost 26.30 points, or 0.26%, to 10,270.55, the S&P's 500 slid 6.04 points, or 0.55%, to 1,097.28 and the NASDAQ advanced 0.85 points, or 0.04%, to 2,190.91.

Wells Fargo lost the most ground among the major financials to be 2.1% lower at the close.

Citigroup shed 1.2%, while American Express fell 1.8%.

Visa slid 0.6% ahead of the release of the credit card company’s results after the close.

Mastercard lost 2% as it prepares to release quarterly results on Thursday. Revenue is expected to be 6% higher than a year ago, while EPS is expected to have increased from US$1.87 a share to US$2.80 in the same period.

Pharmaceutical Pfizer dropped 2.3% after missing quarterly earnings estimates and forecasting earnings for the year that fell short of expectations.

Merck & Co and Johnson & Johnson shed 2.1% and 0.6%.

News Corp rallied 7.1% as it beat quarterly earnings estimates, while Time Warner fell 2.1% despite better than expected quarterly figures.

Barnes & Noble gained 1.8% after an investor increased his stake in the bookseller to 37% and the opinion by some that the stock is relatively cheap.

Energy heavyweights Chevron and Exxon Mobil lost 1.7% and 0.5% following a drop in the price of crude and the release of BP’s disappointing fourth quarter refining margins.

NYMEX light crude oil for March delivery fell US25c to US$76.98 a barrel.

COMEX gold for April delivery fell US$6 to US$1,111.40 an ounce.

European Markets

European stocks snapped a three-day rally on concerns regarding the budget deficits of Greece, Spain and Portugal. A drop in metals prices led miners lower.

The benchmark UK FTSE 100 lost 30.16 points, or 0.57% to 5,253.15. The French CAC40 shed 18.66, or 0.49% to 3,793.47, while Germany’s DAX fell 37.57, or 0.66% to 5,672.09.

Banks were among the worst performers. In Germany, Deutsche Bank and Commerzbank slid 1.8% and 1.5%, while France’s BNP Paribas and Societe Generale lost 2.5% and 2.4%.

It was a mixed day for the UK banks, however. Royal Bank of Scotland and Standard Chartered shed 2.1% and 1.3%.

Barclays and Lloyds added 2% and 1.4%. Insurer Standard Life rose 3.5% after beating full-year sales estimates.

Heavyweight miners Antofagasta, Anglo American and Xstrata were between 2.3% and 3% lower.

Aussie peers BHP Billiton and Rio Tinto lost 0.8% and 1.4%.

Pharmaceuticals struggled after disappointing sales resulted in Roche missing full-year profit forecasts. GlaxoSmithKline weakened 0.7%.

Daimler put on 1.7% on reports the automaker could release quarterly results much higher than consensus estimates.

Volkswagen advanced 2% on a 41% increase in monthly sales at its US division.

Japanese Markets

Japan’s Nikkei was boosted by strong data out of the US, sending exporters higher. However, gains were capped by a fall in Toyoto shares.

The Nikkei 225 rose 33.24, or 0.32% to 10,404.33.

Toyota slumped 5.7% as the automaker revealed the expanding recall in a drop in US auto sales to its lowest level in a decade.

Honda and Nissan gained 2.3% and 1.2%, with the latter announcing a 16% rise in US sales during January.

Electronics company Canon and Olympus put on 1.4% and 3%.

Oil refiner Idemitsu Kosan Co spiked 9.9% and Nippon Oil jumped 4.5% on a rise in the price of crude.

Copper producer Furukawa Co. surged 8.1% after raising its full-year earnings forecast, while the nation’s largest copper miner Nippon Mining Holdings surged 4.6%.

Clothing retailer Fast Retailing fell 3.1% after fall in monthly sales at its Uniqlo chain.

Hong Kong Markets

The Hang Seng put in its best one-day gain in more than two months. The market sentiment was positive as the Chinese government loosened lending restrictions, US home sales increased and companies in Hong Kong, including Cnooc and Esprit, posted better than expected results.

The Hang Seng rallied 449.90, or 2.22% to 20,722.08.

Off-shore oil producer, Cnooc raised its oil production forecast by as much as 28% for the year ahead, sending its share surging 9.4%.

Meanwhile, clothing brand Esprit rallied 7.9% after saying revenue in the second half of last year spiked nearly 10% to $1.2 billion.

Foxconn, the world’s largest third-party maker of mobile phones climbed 5.6%.

Cathay Pacific, Hong Kong’s airline, put on 2.8% after rival Singapore Airlines posted its first profit in three quarters.

Aluminium Corp of China and Jiangxi Copper, the largest producers in China of their respective metals, rose 2.6% and 2.8% respectively.

Melco International Development rose 5% after its Macau casino, a joint venture with Jamie Packer’s crown, said earnings surged in January on increased market share. Melco International put on 2.9%.

The banks also climbed, Bank of China rallied 2.4%. Heavyweight lender ICBC put on 2.3%.

HSBC was up 1.4%.

The Aussie market added to yesterday’s strong gains, adding another 0.9% in a resource led rally. The release of positive economic both locally and abroad has buoyed investors as they look to take advantage of the recent sell-off.  

Figures released by the Bureau of Statistics revealed Australia’s trade deficit increased from a revised deficit of $1.728 billion in November to a smaller than expected $2.252 billion in December.

The Australian Industry Group/Commonwealth Bank Performance of Services Index (PSI) fell below the 50 point level that separates expansion from contraction for the first time since last September. Since reaching a high of 47.4 in October 2009, the Australian PSI has fallen 7.4 points, including a 2.6 point drop in January.

In property news, sales of empty land rose 33% in the three months to September from a year earlier according to the Housing Industry Association and property information group rpdata.com, with the median price rising 5.7%. 

In automotive news, the Federal Chamber of Automotive Industries said sales of passenger cars, special utilities and commercial vehicles were up 11.6% on the corresponding month in 2009 to 74,864 in January.

At the bell, the All Ords was up 44.4 to 4,673.2, while the ASX/200 put on 42.6 to 4,647.9. About 2.5 billion shares worth around $5.4 billion had changed hands.

The big four banks were out of favour with investors, with all of them within 0.6% below the gain line. Westpac and ANZ lost 0.6% and 0.5% to close at $23.45 and $21.77 respectively.

Their falls were outweighed by strong gains elsewhere, with the Banks and Financials sector up 0.4% overall.

Insurer IAG rose 17c, or 4.5% to $3.96 after upgrading its full-year insurance margin from 9-11% to a range of 11.5–13%.

Suncorp-Metway surged 53c, or 6.1% to $9.28, while Macquarie jumped 5.2% to $53.00 in an interesting day in the news for the investment bank.

Property Trusts added 0.8% despite Westfield shares being flat at $12.90.

Mirvac rallied 4.5% to $1.525 as revaluations to its Investment division resulted in 3% decline for the six months to December 31, while Stockland lost 3c, or 0.8% to $3.88.

The Materials and Resources sector rallied strongly again, up 2.3%.

RBS offered a bullish assessment of the Australian steel market, helping Bluescope and Onesteel to put on 2.7% and 1.9% respectively.

However, it was the big miners that offered the most assistance to the market. BHP Billiton added $1.04, or 2.6% to $41.50.

Rio Tinto surged another 99c to $72.23. Shares in Australia’s number two miner have soared % in less than 48 hours.

Fortescue shares climbed 29c, or 6.2% to $4.98.

Newcrest paced gains in the price of gold to be up 2.3% to $32.45, while Lihir advanced 2c to $2.87.

Strong gains in the US homebuilding market overnight spurred the Aussie sector higher with James Hardie putting on 29c, or 3.8% to $7.96 and Boral rallying 24c, or 4.5% to $5.60.

The Energy sector advanced 0.6% thanks to strong gains from the heavyweight stocks.

Woodside gained 40c, or 0.9% to $43.60, while Santos advanced 26c, or 2% to $13.23.

However, the major movers were in the negative direction with ROC Oil down by 30.7% to 45c per share after the junior oil producer was forced to slash its total reserve estimates by around 25% following poor results at its Basker-Manta-Gummy reservoir.

Beach Energy was down 7.1%.

The Industrials sector rose 1.4%. CSR shares were placed in trading halt as the Federal Court rejected the conglomerates proposed to demerger of its sugar division. The court ruled against the split, citing uncertainty over how asbestos claims against the company would be funded. CSR is due to respond by 10am tomorrow.

Leighton climbed $1.14, or 3% to $39.38. Other sector majors were also stronger, including Brambles, which gained 14c to $6.74.

Toll and Asciano added 2.2% and 2.9%. 

Air New Zealand shares spiked another 7.4% to $1.085, extending gains for the last week to over 16%.

Qantas shares rose 2.8% to $2.94. The airline said it plans to slash the number of first class seats on offer across its long-haul flights.

The Consumer Staples was flat with Coca-Cola Amatil the best performer having put on 14c to $10.91.

Wesfarmers and Woolworths were both down 0.1%.

The Consumer Discretionary sector climbed 1.9%. Media giant Newscorp led the way with a 91c, or 5.4% gain to $17.78 after reporting a net income of $254 million for the second quarter.

Fairfax put on 5c, or 2.9% to $1.775.

Among the gamers Crown rose 20c, or 2.6% to $8.00, while retailers Billabong and JB Hi-Fi rallied 2.8% and 2.7%.

Telstra lost 1c to be trading at $3.37. The broader Telecommunications sector was just 0.3% lower.

Around the region, the Nikkei 225 gained 25.6 to 10,396.7, while the Straits Times Index advanced 26.6 to 2,747.4. Meanwhile, the NZSE50 lost 12.3 to 3,135.1. The Hang Seng rose 261.2 to 20,533.3.

Spot gold was trading at US$1,113.43 per ounce, and the Aussie was buying US$0.8859.

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Mirvac asset revaluations drop 3%
Mirvac Group said valuations on its Investment Division assets undertaken during the six months to 31 December 2009 revealed a total revaluation decline of $124.6 million, a decrease of 3%. The group said the revaluations are in line with its expectations, and are further evidence that the devaluation cycle for Australian investment grade assets is close to, or has bottomed.

At the end of the day, Mirvac shares were up 6.5c to $1.525.

Newscorp swings back to a profit
News Corporation reported a second quarter net income of $254m against a $6.4 billion loss a year ago. Newscorp said the return to profit was underpinned by revenue growth of 10% to US$8.7 billion.

By the close, Newscorp shares were up 91c to $17.78.

IAG upgrades FY insurance margin guidance
Insurance Australia Group announced that it expected to achieve a full year insurance margin in the range of 11.5–13%, up from previous guidance of 9–11%. The company said based on unaudited results it expects to report a half-year insurance profit of $488 million, representing an improved insurance margin of 13.4%.

At the finish, IAG shares were up 17c to $3.96.

AXA 2009 funds under mgmt, admin and advice down 3%
AXA Asia Pacific released new business and fund flows for the year ended December 2009. At $81 billion, total funds under management, administration and advice grew by 7% in the second half, but were down 3% over the year.

By the close of trading, AXA Asia Pacific Holdings shares were unchanged at $6.55.

ROC Oil shares tumble
ROC Oil shares slumped by nearly 25% after the junior oil producer said remaining 2P Reserves at 31 December 2009 would be between 20% and 25% lower than previously estimated. This follows a review of the company’s Basker-Manta-Gummy (“BMG”) reservoir, which is expected to produce between 3 mmbbl and 5 mmbbl, against 18 mmbbl previously expected.

At the close, ROC Oil shares were down 19.5c to 44c.

Mirvac Group (MGR) said valuations on its Investment Division assets undertaken during the six months to 31 December 2009 revealed a total revaluation decline of $124.6 million, a decrease of 3%. The group said the revaluations are in line with its expectations, and are further evidence that the devaluation cycle for Australian investment grade assets is close to, or has bottomed.

Mirvac said its total portfolio weighted average capitalisation rate has increased by 24 basis points to 7.79%.

The group said investment properties under construction would be carried at fair value, having previously carried at cost, resulting in a reduction in carrying value of $86.3 million.

Mirvac said it would update the market on 16 February at its half-year results.

As at 1358 AEDT, Mirvac shares were up 2.5c to $1.485.

Shares opened with strong gains following another good day on Wall Street, though have drifted lower through the morning to be up 0.5% at lunch. Like yesterday, the miners and energy stocks made solid gains, while the big four banks capped gains.

At midday, the All Ords was up 26.8 to 4,655.6, while the ASX/200 put on 22.5 to 4,627.8. About 1 billion shares worth around $2.3 billion had changed hands.

The big four banks were all out of favour with investors. Westpac lost 46c, or 1.9% to $23.14.

CBA was down 65c, or 1.2% to $52.90 and NAB shed 28c, or 1.1% to $25.67. ANZ fell 44c, or 2% to $21.45.

Much of the broader Banks and Financials sector was relatively flat, with the sector down 0.6% overall.

Two of the insurers were exceptions, however, with IAG surging 18c, or 4.7% to $3.97.

Suncorp-Metway rose 32c, or 3.7% to $9.07.

Property Trusts lost 0.4% as Westfield drifted lower. Its shares were trading at $12.79, down 11c from yesterday’s close.

Stockland lost 6c, or 1.5% to $3.85.

The Materials and Resources sector rallied strongly again, up 2.3%

RBS offered a bullish assessment of the Australian steel market, helping Bluescope and Onesteel to put on 2.7% and 1.6% respectively.

However, it was the big miners that offered the most assistance to the market. BHP Billiton added $1.06, or 2.6% to $41.52.

Rio Tinto surged another $1.22 to $72.23. Shares in Australia’s number two miner have soared 7.2% in less than 48 hours.

Newcrest and Lihir paced gains in the price of gold to be up 2.9% and 1.8% at $32.64 and $2.90 respectively.

Fortescue shares rose 21c to $4.90.

Strong gains in the US homebuilding market overnight spurred the Aussie sector higher with James Hardie putting on 34c, or 4.4% to $8.01.

Boral rallied 29c, or 5.4% to $5.65.

The Energy sector was up 0.8% thanks to strong gains from the heavyweight stocks.

Woodside gained 39c, or 0.9% to $43.59. Origin advanced 12c, or 0.7% to $16.31.

However, the major movers were in the negative direction with ROC Oil down by 27.6% to 46c per share after the junior oil producer was forced to slash its total reserve estimates by around 25% following poor results at its Basker-Manta-Gummy reservoir.

Beach Energy was down 7.1%, while Caltex lost more than 2% over its market cap.

The Industrials sector rose 1.1%.

Leighton climbed $1.16, or 3% to $39.40. Other sector majors were also stronger, including Brambles, up 10c to $6.70 and Toll, up 14c to $8.62.

Air New Zealand shares spiked another 7.4% to $1.085, extending gains for the last week to over 16%.

Qantas shares surged 3.1%. The airline said it plans to slash the number of first class seats on offer across its long-haul flights.

The Consumer Staples was relatively flat for second straight session. The sector rose just 0.3%.

Wesfarmers climbed 21c, or 0.8% to $27.55.

The Consumer Discretionary sector climbed 1.1%. Media giant Newscorp led the way with a 63c, or 3.7% gain to $17.50 after reporting a net income of $254 million for the second quarter. Fairfax put on 2.5c, or 1.4% to $1.75.

Among the gamers Crown rose 18c, or 2.3% to $7.98.

Telstra lost 2c to be trading at $3.36. The broader Telecommunications sector was just 0.3% lower.

Most of the Healthcare stocks were marginally lower, resulting in the sector being down 0.5%.

Around the region, the Nikkei 225 gained 60.0 to 10,431.1, while the Straits Times Index advanced 25.5 to 2,746.3. Meanwhile, the NZSE50 eked out a 1.6 point gain to 3,148.9.

Spot gold was trading at US$1,113.55 per ounce, and the Aussie was buying US$0.8871. 

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Newscorp swings back to a profit
News Corporation reported a second quarter net income of $254m against a $6.4 billion loss a year ago. Newscorp said the return to profit was underpinned by revenue growth of 10% to US$8.7 billion.

At midday, Newscorp shares were up 61c to $17.48.

IAG upgrades FY insurance margin guidance
Insurance Australia Group announced that it expected to achieve a full year insurance margin in the range of 11.5–13%, up from previous guidance of 9–11%. The company said based on unaudited results it expects to report a half-year insurance profit of $488 million, representing an improved insurance margin of 13.4%.

At lunch, IAG shares were up 17c to $3.96.

AXA 2009 funds under mgmt, admin and advice down 3%
AXA Asia Pacific released new business and fund flows for the year ended December 2009. At $81 billion, total funds under management, administration and advice grew by 7% in the second half, but were down 3% over the year.

At noon, AXA Asia Pacific Holdings shares were unchanred at $6.55.

ROC Oil shares tumble
ROC Oil shares slumped by nearly 25% after the junior oil producer said remaining 2P Reserves at 31 December 2009 would be between 20% and 25% lower than previously estimated. This follows a review of the company’s Basker-Manta-Gummy (“BMG”) reservoir, which is expected to produce between 3 mmbbl and 5 mmbbl, against 18 mmbbl previously expected.

At lunchtime, ROC Oil shares were down 19.5c to 44c.