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Harvey Norman Holdings Limited (HVN) said sales from the franchised “Harvey Norman” complexes, commercial divisions and other sales outlets in Australia, New Zealand, Slovenia and Ireland (excluding Singapore) for the six months ended 31 December 2009 increased 4% on the previous corresponding period. The retailer said unaudited preliminary accounts for the half-year indicate that profit before tax and minority interests should exceed the profit of the pcp by in excess of 40%.

Harvey Norman said sales totalled $3.27 billion, while like-for-like sales rose 2.5% in the six-month period

The company said Australian sales in the first increased 6.4% on the pcp, which included 5.8% and 6.8% rises in the first and second quarter respectively.

In the same periods, like-for-like sales rose 5.6%, 4.6% and 6.5%.

The company said it remains cautiously optimistic about the next five months, with sales for the month of January 2010 having met managements’ expectations.

As at 1054 AEDT, Harvey Norman shares were down 4c to $3.68.

AED Oil Limited (AED) has expanded its interest in south east Asia after acquiring 100% and 60% stakes in two Nations Petroleum contract areas in Indonesia that hold interests in oil and gas. AED said it would pay $US1.5 million in cash and 12 million AED shares once all necessary regulatory approvals have been obtained.

Ramelius Resources Limited (RMS) said it was expecting a jump in half year profit for the six months to 31 December 2009 of around $15 million. Last year the company posted a $1.03 million loss, with the improvement attributable to gross gold sales of $20.6 million.

Eden Energy Limited (EDE) shares soared Friday after the company announced it had reached a deal with Indian Oil Corporation Limited (IOCL) to produce hydrogen and ultra-strong solid carbon fibres and nanotubes from methane gas. The company said it had executed a non-binding terms sheet with IOCL through which the two companies would enter into a farm-in agreement to scale up a new Pyrolysis technology jointly developed by Eden and the University of Queensland (UQ). Eden Energy said if successfully piloted on a commercial scale, the process could have important implications for the widespread commercialisation of the ultra-strong forms of carbon that can be used in composite materials for the construction, electronics, aerospace and vehicle building industries. The company has reached a preliminary in-principle agreement with the UQ for Eden to purchase from UQ its 50% interest in the patents and intellectual property developed by the project.

Norton Gold Field Limited (NGF) posted an operating loss after income tax for the half-year of $12.88 million compared to a loss of $9.49 million a year earlier. The company said the increased loss was mainly attributable to the negative movement in the fair value of the hedge increasing by $18.463 million as at 31 December 2009. Revenue in the period increased 11.5% to about $69.5 million. Norton Gold Field said profit before interest, tax, depreciation and amortization increased from a small loss the previous half year period to a positive $11.91 million for the six months due to a higher gold price, and no impairment charges during the period.

Virgin Blue Holdings Limited (VBA) said it expected it would swing back to a pre-tax profit of between $80 million and $110 million for the 2010 financial year, against a loss of $93 million last year.

The airline said the result was attributed to two key factors. Firstly, oil prices fell 27.6% to around $92 per barrel.

Secondly, the company said, there had been a rebound in the number of passengers traveling, notably domestic business passengers where numbers “would be broadly in line with the same period in 2008.”

The company said pressures would remain from seasonal fluctuations and strong competition.

At the close Thursday, Virgin Blue shares were trading at 55c each.

Sonic Healthcare Limited (SHL) announced the acquisition of Belgian laboratory group Medhold Group for an enterprise value of EUR 232 million. The company said the purchase price represents an EBITDA multiple of approximately 8.4 times before synergies and that the acquisition would be immediately earnings per share accretive and would be funded from existing cash and debt facilities.

Sonic said Medhold has established an outstanding reputation for medical quality and service excellence in all areas of routine and esoteric testing, including anatomical pathology since being established in 1980.

The company said founders and joint CEOs, Annie Vereecken and Geert Salembier, would continue to lead Medhold and its staff of over 300.

Sonic said Medhold operates from a new, purpose-built, state-of-the-art reference laboratory in Antwerp and has four additional smaller laboratories service regional areas in northern Belgium, as well as the Brussels metropolitan area.

“Medhold also services hospitals and other referral sources in the Netherlands out of the nearby Antwerp laboratory facility,” the company said.

”With a combined population of approximately 27 million, Belgium and the Netherlands ideally suit Sonic's criteria for growth in stable and reliable laboratory markets within Sonic’s core regions of Western Europe, Australia and North America.”

Sonic Healthcare’s CEO and managing director, Dr Colin Goldschmidt, said the acquisition further strengthens Sonic's position as the clear leader in European laboratory medicine.

“This acquisition presents us with new opportunities for additional growth and synergy capture in markets that suit our operations,” Dr Goldschmidt said.

At the close of trade Thursday, Sonic shares were trading at $14.28.

Pharmaxis Limited (PXS) revenue fell 42% to $2.2 million in the six months to 31 December 2009, sending their net profit down 40% to a loss $21.5 million. However, the pharmaceutical company, which is developing a treatment for cystic fibrosis, reported a 14.5% increase in revenue from the sales of goods, to $354,000, with the decline attributed to a loss of other income, including from interest earned.

The company recently reported the completion of enrolment of the group’s second global Phase III trial of its flagship Bronchitol product with licenses now being applied for in Europe and Australia.

Meanwhile, research & development expenses increased by around $3.7 million in the first half of fiscal 2010 compared to the first half of fiscal 2009.

However, the financial backbone of the company is its Aridol product, an airway inflammation test useful for asthma sufferers.

Ariodal is now being sold in 13 countries, Pharmaxis noted.

The company also continued its commissioning of its new manufacturing plant in readiness for the European launch of Bronchitol, with the facility expected to be completed by the second quarter of 2010.

The company noted net tangible assets per share had stayed steady from a year ago, at 53c per share.

At the close Thursday, Pharmaxis shares were trading at $2.53 each.

ResMed Inc. (RMD) reported a 36% increase in net income to US$46.0 million for the December quarter compared to the previous corresponding period. The company said the result was on the back of a 23% increase in revenue to US$275.1 in the same period.

Income from operations was US$57.9 million, or a 34% increase on the pcp, while diluted earnings per share for the quarter rose 36% to US60c.

However, ResMed said SG&A expenses increased 20% to US$84.1 million versus the pcp due to the depreciation of the US dollar against international currencies and necessary expenses to support sales growth. R&D expenses increased by 28% to US$19.1 million for the quarter and amortization of acquired intangibles was US$2.1 million.

Looking at the results over the six-month period, the company said revenue increased 18% versus the pcp, while income from operations and net income rose 38% and 42% respectively to US$110.6 million and US$88.1 million. Diluted earnings per share increased 44% to US$1.15 per diluted share.

President and CEO, Kieran T. Gallahue, said ResMed’s robust revenue growth, recent product launches and exciting product pipeline continue to position the company well for the future.

“As previously indicated, we are steadily introducing new products in what continues to be an exciting year for launching innovative treatment solutions for sleep-disordered breathing,” Mr Gallahue said.

The company announced the release of its newest generation of flow generators – the ResMed S9 series.

”As is customary for ResMed, this initial introduction will be for the S9 AutoSet and S9 Elite products, expanding to other flow generators over time,” Mr Gallahue said.

”We expect the launch will begin in both Europe and the Americas during the third quarter of this fiscal year.”

He added that the company was also continuing to drive market expansion.

”We are taking steps to increase awareness of the health dangers of sleep-disordered breathing by sponsoring educational programs targeted at the primary care physician community,” Mr Gallahue said. 

"These efforts, driven both in concert with another industry participant and on our own, should further enlighten both doctors and patients about the relationship between sleep-disordered breathing/obstructive sleep apnea and co-morbidities such as cardiac disease, diabetes, hypertension and obesity.”

At the close of trade Thursday, ResMed shares were trading at $5.99.

US markets were trading around levels not seen since early November as jobless data continues to remind investors the effects of the recession are far from over. Massive debt levels and the fear of defaulting on loans by some European countries were also in the news on the same day that the US government voted to increase its debt ceiling by $1.9 trillion to $14.3 trillion.

In the high profile jobs report out new unemployment claims rose to 480,000, up 8,000 when analysts were expecting a 25,000 fall.

Meanwhile continuing claims were steady where a fall had also been expected.

In more positive news, December factory orders rose 1%.

The Dow Jones fell 268.37 points, or 2.61%, to 10,002.18, the S&P 500 sank 34.17 points, or 3.11%, to 1,063.11 and the NASDAQ lost 65.48 points, or 2.99%, to 2,125.43.

Among the banks, Citigroup lost 5.6% and Bank of America tumbled 3.4%. Wells Fargo slumped 3.8%.

Investment banks JPMorgan and Goldman Sachs lost 4.8% and 4.2% respectively.

Of the major finance stocks the best performer was American Express, which posted a 2.1% fall.

Berkshire Hathaway A shares lost $2,800 each after the company lost its AAA credit rating.

In largely ignored reporting news, tech giant CISCO added 0.4% after earnings beat expectations.

Meanwhile, increasingly bitter rivals Google, Microsoft and Apple lost 2.5%, 2.8% and 3.6% respectively.

Kelloggs lost 5% after fourth quarter profit fell 1.7%.

Macy’s shares jumped 2.7% after posting unexpected growth in sales and upped its guidance.

Wal-Mart stores lost 1.5%.

COMEX gold for April delivery fell US$49 to settle at US$1,062.40 an ounce.

NYMEX light crude oil for March delivery fell US$3.84 to settle at US$73.14 a barrel.

Chevron and Exxon Mobil slumped 2.2% and 2.1% respectively, hurt by the strengthening US dollar.

European Markets

The major European markets tumbled more than 2% Thursday as Portugal, Greece and Spain all looked to have debts that are pretty much out of control. The poor US jobs data also reinforced the losses.

The UK benchmark FTSE100 lost 2.2% and the French CAC40 slumped 104.22, or 2.75% to 3,689.25. The German DAX was off 2.5%.

The Portugese main index, the PSI-20 was down 5%. Greece’s ASE index lost 3.3% to be at levels not seen since April last year – at the beginning of the economic recovery.

By next year it is predicted Greece, Spain and Portugal are sitting at debt levels of 74%, 135% and 91% of their country’s respective GDP.

Royal Dutch Shell lost 2.4%. The oil producer said it would shed 1,000 jobs in what it calls a ‘challenging’ environment.

BP lost 1.6%, while France’s Total lost 1.8%, both not bad declines when compared to their national indexes.

Among the banks, Barclays tumbled 7.8%. Royal Bank of Scotland gave up 5.8% and Standard Life was down 2.2%.

In France, Societe Generale, Credit Agricolae and BNP Paribas all lost between 5% and 6%.

Deutsche Bank lost 4.2%, while three of the major banks in Spain lost between 7.5% and 9.4%, including Banco Santander – Eurozone’s largest bank.

Among the miners, BHP Billiton and Rio Tinto retreated 4% and 4.6% on their London listings as the price of base metals slumped on the LME.

Anglo American was off 4.9% and Xstrata was a touch under 6% lower.

Telephone directory company Yell Group provided a spot of bright news rallying 17.8% after revenue fell less than expected. Vodafone rose 3.6%.

Japanese Markets

Toyota continued to weigh on the Nikkei, which snapped a three day winning streak. Electronics companies, financials and commodity related stocks all lost ground.

The Nikkei 225 lost 48.35, or 0.46% to 10,355.98.

In a day of record trading levels for the stocks, Toyota fell 3.5% on the continuing recall crisis as the US government increased pressure on the company to address the safety issues. After the close the automaker raised its forecast for the year to March after beating third quarter forecasts.

Toyota suppliers were also heavily sold.

Rival Honda put on 2.6% after increasing its full-year forecast due to the yen strengthening less than expected against the greenback.

Sharp dropped 5.5% as it missed quarterly profit estimates. Panasonic and Sony slid 2.3% and 2.2%.

Sony reported its first profit in five quarters after the close.

Mitsubishi UFJ Financial shed 2.7% on the back of a reported increase in bad debt charges.

Mizuho Financial and Sumitomo Mitsui Financial dipped 1.7% and 2.1%.

Commodities traders Mitsubishi Corp and Itochu Corp weakened 2.7% and 2.9%, while gold producer Sumitomo Metal Mining lost 1.6% as crude and metals prices fell.

Hong Kong Markets

Stocks in Hong Kong were slammed Thursday on reports a major Chinese would be back to tap the market for extra funds. There was profit taking on the banks after investment arm of China's sovereign wealth fund said it wouldn’t buy any of the new shares.

The Hang Seng tumbled 380.44, or 1.84% to 20,341.64.

Around the banks, Bank of Communications led the sector low, down 1.7% on reports it would still need to raise extra capital.

Bank of China lost 1%, while ICBC shed 2.4%, reversing the previous day’s gains.

HSBC, the largest company on the Hang Seng, shed 2.2%.

Aluminum Corp of China retreated 3.7%, while Jiangxi Copper sank 3.9%.

The banks weren’t the only sector hinting at raising funds, with food producer China Starch slumping nearly 20% after saying it would need extra money via a capital raising.

Stocks were down across a range of other sectors including China Aerospace, China National Building Material Co and property developer C C Land Holdings lost 9.4%, 5.5% and 2.7% respectively.

Local shares snapped two days of gains with the market down 0.7% Thursday. Resources led the slide, while the banks continued to struggle in the wake of Tuesday’s announcement that interest rates would remain unchanged. 

In retail news, according to an Australian Bureau of Statistics report retail sales increased 1.1% in the December quarter, however dipped 0.7% in the month of December. While the quarterly rise was in line with expectations, forecasts were for a growth of 0.2% in December. 

At the close of trade, the All Ords was down 29.1 to 4,644.1, while the ASX/200 lost 26.3 to 4,621.6. About 2.4 billion shares worth around $5 billion had changed hands.

The Materials and Resources sector lost 1.5% following a weak lead in from overseas commodity markets.

Newcrest fell 48c, or around half of lunchtime losses to close at $31.97 after gold futures fell on caution ahead of the release of US jobs data on Friday.

Gold and copper producer OZ Minerals slumped 5.5% to $1.04, while building materials company James Hardie wiped off most of yesterday’s strong rally to be 2.4% lower at $7.77.

The latter’s share price wasn’t helped by the ABS releasing figures showing the seasonally adjusted estimate for total dwelling units approved rose 2.2% in December.

Market heavyweights BHP Billiton lost 51c to $40.99 and Rio Tinto fell $1.88, or 2.6% to $70.12.

Meanwhile, Fortescue was down 21c, or 4.2% to $4.77.

Botswana Metals Limited shares soared over 320% after the African focused miner said it had found high grades of copper near a nickel mine it has already established.

Energy stocks closed up 0.3%.

Karoon Gas sank 75c, or 11.3% to $5.91 after announcing plans to plug and abandon a well at Montara reservoir. The company’s shares hit lows of $4.51 and highs of $6.35 in what was a highly volatile day for the stock.

Woodside slid 40c, or 0.9% to $43.20, while Santos surged 4% to $13.76 after the CEO of the gas producer said it was in advanced talks to sell Gladstone LNG to Asian customers.

The Reserve Bank’s decision to retain the cash rate continued to have a negative impact on the big four banks. 

Westpac was down 34c to $23.13 and ANZ shed 35c to $21.42.

Insurer QBE was 1.4% lower to be trading at $22.78 as the Banks and Financials sector weakened 0.7%.

Dexus added 1.5c to 85.5c and Mirvac was unchanged as reports surfaced that the two property trusts may make separate bids for Westpac Office Trust’s assets.

The Property Trust sector edged 0.4% into the black.

It was a relatively mixed day for Industrials, however losses among the majors outweighed gains seen elsewhere as the sector fell 0.6%.

CSR slumped 6.5% to $1.725 after coming out of a trading halt after the Federal Court blocked the conglomerate’s plan demerge its sugar business yesterday. UBS downgraded its rating on the stock to ‘neutral’ as a result.

Leighton dropped 58c, or 1.5% to $38.80 and Brambles eked out a 2c gain to $6.76.

Asciano gained 1.1% to $1.77 as it was awarded a $250m haulage contract from Macarthur Coal, while Downer EDI rose 2.2% to $8.28 after securing $750m in new contract across its rail, resources, energy and infrastructure divisions.

Bathroom appliance supplier Reece shares edged just 0.2% high to $24.60 despite saying profits would be 15% higher than last year thanks to cost cutting.

The Consumer Discretionary sector weakened 1.1%.

Tabcorp recovered from morning losses to be flat after announcing that a poor performance from its Queensland casinos resulted in a 2% drop in net profit for the six months to 31 December 2009.

Crown and Aristocrat shed 1.9% and 2.2% to $7.85 and $4.40.

Retailers dropped off after the release of the national retail figures. David Jones slid 20c to $4.73, while online accommodation bookings provider Wotif.com slumped 4.8% to $6.52.

Myer fell 3.9% to $3.25 after reporting soft sales figures over Christmas.

Coca-Cola Amatil dipped 1c to $10.90. The beverage maker said yesterday that an increase in costs had forced it to increase prices by 5%.

Foster’s countered as it rallied 2.4% to be trading at $5.55.

The Consumer Staples sector was up 0.8% as sector majors Wesfarmers and Woolworths made modest gains.

Telecommunications outperformed to be 1.4% higher on the back of a 5c rise to $3.42 from Telstra.

Biota was a highlight among Healthcare stocks having jumped 2.9% to $2.12 as it awaits the release of GlaxoSmithKline’s quarterly report, which is due tonight. Analysts are predicting Biota may receive record quarterly royalties of between $30m – $35m. 

Around the region, the Nikkei 225 lost 90.5 to 10,313.8, while the Straits Times Index dipped 19.9 to 2,744.9. Meanwhile, the NZSE50 added 13.8 to 3,148.9. The Hang Seng shed 320.2 to 20,401.8.

Spot gold was trading at US$1,109.97 per ounce, and the Aussie was buying US$0.8814. 

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ARB expects $21m first-half profit
ARB Corporation said it finished an already strong first half of the year with record sales being achieved in both November and December 2009. As a result, the four-wheel drive accessories manufacturer and distributor advised that, based on unaudited management accounts, sales revenue has increased by 15.5% and net profit before tax is expected to be approximately $21 million for the six-month period.

At the close, ARB shares were up 16c to $5.16.

Downer secures $750m in new contracts
Downer EDI said it has secured more than $750 million in new contract across its rail, resources, energy and infrastructure divisions. Managing director and CEO Geoff Knox said the contracts added to a work-in-hand balance of over $16 billion.

At the end of the day, Downer shares were up 18c to $8.28.

Karoon shares slump on well results
Last night Karoon Gas confirmed gas in its Poseidon-2 well at the Plover-B Formation. However, the company said that, along with joint venture partner ConocoPhillips, it has elected to finish a drill stem test of the Montara Formation reservoir immediately after reviewing flow and pressure data.

At the bell, Karoon shares had slumped 75c to $5.91.

Myer sales climb 2% in 1HFY10
Myer Holdings reported a 2% hike in sales revenue for the six months to 23 January 2010 to $1,797 million. Looking ahead EBIT for the first half of FY10 was expected to increase over 10%, ahead of the 5.6% EBIT growth first flagged in the company prospectus.

At the finish, Myer shares were trading down 13c to $3.25.

Asciano awarded $250m haulage contract
Asciano announced that it has executed a long term, take-or-pay contract with Macarthur Coal 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.

At the close, Asciano shares were trading up 2c to $1.77, while Macarthur Coal shares were up 9c to $10.09.

Tabcorp results steady, outlook uncertain
Tabcorp Holdings 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.

At the end of the session, Tabcorp shares were unchanged at$7.05.

Santos Limited (STO) said, in a presentation to the Melbourne Mining Club today, it is in detailed and advanced discussions with a number of Asian LNG buyers for train one and train two offtake and equity in the Gladstone LNG project. The company said the project is on track for a final investment decision (“FID”) in the middle of this year and first LNG cargoes in 2014. Australia’s largest producer of gas for domestic consumption said its strategy is to safely deliver a base business, grow its LNG business, and pursue focused growth in Asia. The company said it has been making steady and substantial progress with its GLNG project being 90% through its downstream FEED as well as 75% through dual FEED for the upstream component. Santos added that it has a binding offtake agreement in place with PETRONAS for 2 million tonnes per annum, plus a further 1 mtpa at GLNG’s sole option, valid until FID.

Woodside Petroleum Limited (WPL) announced the successful completion of a retail bookbuild, which was conducted on February 3. The company said the retail bookbuild priced at $43.10 per share, represented a 2.4% premium to the underwritten issue price for the entitlement offer announced in December. Woodside cash proceeds of $1.00 per share, for the sale of the relevant entitlements, would be returned to renouncing and ineligible retail shareholders. 

Coeur d’Alene Mines Corporation (CXC) announced the discovery of a new high-grade vein system at its Kensington Gold Mine, which is scheduled to commence production in the third quarter of 2010 at the rate of approximately 120,000 ounces of gold annually. The company said the new structure, named the Kimberly, is a gold-bearing vein system exposed in the decline from the mill to the Kensington mine, within the exploration district Coeur controls around the mine in Alaska. Coeur said eight phase-one core holes intersected very significant gold mineralisation in a drilling program initiated in 2009. The company said assays ranged from 0.144 ounces per ton to over 1.29 ounces per ton, with a total of 14 core holes completed in the fourth quarter.

Victoria Petroleum NL (VPE) said most roads in the northern Cooper Basin have been closed to all traffic by Santos following recent heavy rains in northern South Australia. The operator for the Growler/Snatcher/Mirage oil fields said the road oil tankers are unable to transport these fields oil production to the Santos operated Moomba/Dullingari- Port Bonython Oil Pipe Line. Victoria said this has necessitated the temporary shut-in of the oil fields as oil storage tanks at the oil fields are at full capacity.

Botswana Metals Limited (BML) shares surged Thursday after the company said drilling at its Airstrip Copper anomaly in Africa intercepted significant copper and silver mineralisation. The company said the best results were at a depth of 52 metres and returned a 4m intersection of 16.99% copper (Cu), including 1m at 25% Cu and 1m at 23% Cu, and 1071 g/t silver (Ag) or approximately 33 ounces silver per ton. Botswana said additional drilling would now be conducted within February 2010. The company said the discovery is within walking distance of the Maibele North Nickel discovery, which it is now reassessing in light of the Airstrip results.

Aussie stocks retreated Thursday morning after equity and commodity markets lost ground across the globe overnight. Resources led the slide, while the local currency continued to struggle in the wake of Tuesday’s announcement that interest rates would remain unchanged. 

In retail news, according to an Australian Bureau of Statistics report retail sales increased 1.1% in the December quarter, however dipped 0.7% in the month of December. While the quarterly rise was in line with expectations, forecasts were for a growth of 0.2% in December. 

At noon, the All Ords was down 40.5 to 4,632.7, while the ASX/200 lost 40.2 to 4,607.7. About 1 billion shares worth around $1.8 billion had changed hands.

The Materials and Resources sector had lost 0.7% by midday after metals prices on the LME retreated due to a strengthening greenback. The price of copper slid 3.3%, while nickel dropped 4.6%.

Newcrest fell $1.00, or 3.1% to $31.45 after gold futures fell on caution ahead of the release of US jobs data on Friday.

Gold and copper producer OZ Minerals slumped 4.1% to $1.055, while building materials company James Hardie wiped off yesterday’s strong rally to be 4.3% lower at $7.62.

Market heavyweight BHP Billiton lost 55c to $40.95 and Rio Tinto fell $1.58, or 2.2% to $7.42.

Energy stocks tracked the price of crude lower. The sector was down 0.8%.

Karoon Gas sank 91c, or 13.7% to $5.75 after announcing plans to plug and abandon a well at Montara reservoir. The company’s shares opened about 30% lower.

Woodside slid 55c, or 1.3% to $43.05, while Oil Search was 1.1% lower at $5.44.

The Reserve Bank’s decision to retain the cash rate continued to have a negative impact on the big four banks.

CBA and ANZ were the worst performers. Both stocks were down 1.2% to $52.77 and $21.51 respectively.

Insurer QBE was also 1.2% lower to be trading at $22.83 as the Banks and Financials sector weakened 0.7%.

Dexus added 1c to 85c and Mirvac weakened 1.5c $1.51 as reports surfaced that the two property trusts may make separate bids for Westpac Office Trust’s assets.

The Property Trust sector edged 0.2% into the red.

It was a relatively mixed morning for Industrials, however losses among the majors outweighed gains seen elsewhere as the sector fell 0.9%.

CSR slumped 5.7% to $1.74 after coming out of a trading halt after the Federal Court blocked the conglomerate’s plan demerge its sugar business yesterday. UBS also downgraded its rating on the stock to ‘neutral’ as a result.

Leighton dropped $1.21, or 3.1% to $38.17 and Brambles slid 8c to $6.66.

Asciano gained 0.9% to $1.7695 as it was awarded a $250m haulage contract from Macarthur Coal, while Downer EDI rose 3.1% to $8.35 after securing $750m in new contract across its rail, resources, energy and infrastructure divisions.

Consumer Discretionary weakened 1.4%.

Tabcorp slid 7c to $6.98 after announcing that a poor performance fro its Queensland casinos resulted in a 2% drop in net profit for the six months to 31 December 2009.

Crown and Tatts Group shed 2% and 2.6% to $7.84 and $2.23.

Retailers dropped off after the release of the national retail figures. David Jones slid 17c to $4.76, while online accommodation bookings provider Wotif.com slumped 4.5% to $6.54.

Myer fell 3.6% to $3.26 after reporting soft sales figures over Christmas.

Coca-Cola Amatil dipped 21c to $10.70. The beverage maker said yesterday that an increase in costs had forced it to increase prices by 5%.

Foster’s countered as it rallied 2% to be trading at $5.53.

The Consumer Staples sector was flat as sector majors Wesfarmers and Woolworths hardly moved.

Telecommunications outperformed to be 1.1% higher on the back of a 5c rise to $3.42 from Telstra.

Biota was a highlight among Healthcare stocks having jumped 3.4% to $2.13 as it awaits the release of GlaxoSmithKline’s quarterly report, which is due tonight. Analysts are predicting Biota may receive record quarterly royalties of between $30m – $35m. 

Around the region, the Nikkei 225 lost 33.0 to 10,371.3, while the Straits Times Index dipped 1.6 to 2,763.3. Meanwhile, the NZSE50 added 6.2 to 3,141.3.

Spot gold was trading at US$1,106.70 per ounce, and the Aussie was buying US$0.8799. 

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ARB expects $21m first-half profit
ARB Corporation said it finished an already strong first half of the year with record sales being achieved in both November and December 2009. As a result, the four-wheel drive accessories manufacturer and distributor advised that, based on unaudited management accounts, sales revenue has increased by 15.5% and net profit before tax is expected to be approximately $21 million for the six-month period.

At lunch, ARB shares were up 20c to $5.20.

Downer secures $750m in new contracts
Downer EDI said it has secured more than $750 million in new contract across its rail, resources, energy and infrastructure divisions. Managing director and CEO Geoff Knox said the contracts added to a work-in-hand balance of over $16 billion.

At midday, Downer shares were up 25c to $8.35.

Karoon shares slump on well results
Last night Karoon Gas confirmed gas in its Poseidon-2 well at the Plover-B Formation. However, the company said that, along with joint venture partner ConocoPhillips, it has elected to finish a drill stem test of the Montara Formation reservoir immediately after reviewing flow and pressure data.

At noon, Karoon shares had slumped 95c to $5.71.

Myer sales climb 2% in 1HFY10
Myer Holdings reported a 2% hike in sales revenue for the six months to 23 January 2010 to $1,797 million. Looking ahead EBIT for the first half of FY10 was expected to increase over 10%, ahead of the 5.6% EBIT growth first flagged in the company prospectus.

Half way through the day, Myer shares were trading down 15c to $3.23 each.

Asciano awarded $250m haulage contract
Asciano announced that it has executed a long term, take-or-pay contract with Macarthur Coal 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.

At noon, Asciano shares were trading up 0.5c to $1.755, while Macarthur Coal shares were trading down 6c to $9.94.

Tabcorp results steady, outlook uncertain
Tabcorp Holdings 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.

At midday, Tabcorp shares were trading down 7c to $6.98 each.