The Australian stock market traded both sides of the gain line Thursday, although a late flourish saw it close 0.3% higher. The market posted its fifth straight session of gains on the back of strong contributions from the miners, retailers and property stocks.
In economic news, the Australian Bureau of Statistics said the balance on goods and services was a deficit of $1.176 billion in January 2010 in seasonally adjusted terms. This was a decrease of $998 million on the revised deficit in December 2009.
At the end of the day, the All Ords was up 13.7 to 4,757.5, while the ASX/200 edged 14.6 higher to 4,750.3. About 2.4 billion shares worth around $5.1 billion had changed hands.
The Materials and Resources sector strengthened 1%.
Base metals rose again as the greenback weakened against the euro following an announcement of debt relief for Greece.
BHP Billiton added 61c, or 1.5% gain to $42.28. Rio Tinto put on 53c to $74.40.
Mirabela Nickel added to yesterday’s 4.6% gain by rallying a further 3.1% to be trading at $2.36. The price of nickel has surged in the last few days, including a 2.7% rise in London last night.
South African focused miner Aquarius Platinum rallied 4.4% to $6.59.
Gold miners gained as the precious metal touched seven-week highs. Newcrest and Lihir put on 1.7% and 1% to $33.50 and $2.94 respectively.
Nufarm shed 10c, or 1.1% to $9.18 after the Australian Securities Exchange questioned the agrichemical company over its timing of the announcement that it expects to report a $40 million loss for the first half. It was soon followed by an announcement regarding a shareholder vote on the sale of a 20% stake in the company to Japan's Sumitomo Chemical.
Orica shed 1.1%.
The Banks and Financials sector gained 0.2% a day after the last of the major lenders passed on the 25 basis point interest rate hike, in line with the Reserve Bank.
Westpac and CBA were both less than 0.3% below the gain line, while ANZ eased 21c lower to $23.67. The bank this afternoon said it would open an office in Mumbai after receiving a provisional approval for a banking license.
NAB was the only one of the big four banks to make ground, rising 45c, or 1.7% to $26.65.
Macquarie Group added 69c, or 1.5% to $47.29.
Henderson Group put on 1% to $2.10 on the back of a broker upgrade from Goldman Sachs.
Perpetual slumped 3.7% to $36.60, while insurer QBE fell 31c, or 1.5% to $20.07. Other insurers didn’t move a great deal.
Westfield led the Property Trust sector 1.2% higher with a 17c, or 1.4% gain to $12.22.
Australia’s second largest property developer, Stockland, gained 10c, or 2.4% to $4.20.
On the other side of the coin, Lend Lease dropped 36c, or 4% to $8.57.
Mirvac gained 1.9% amid speculation it has emerged as the likely buyer of Westpac Office Trust.
The Energy sector lost 0.1% despite crude futures climbing 1.5% in New York after a reported increase in oil inventories and an improvement in demand.
Woodside gained 10c to $44.29 after the disclosure that CEO Don Voelte sold almost one-third of his holding in the company.
Origin fell 2% to $16.36. Meanwhile, Paladin slumped 3.2% to $3.62.
Linc Energy went as high as 12% above the gain line, although settled 5.4% in the black after saying it was close to finding a buyer for three coal tenements.
Arrow Energy shares were 13c, or 3.9% up to $3.44 after the company announced the appointment of a Chinese CEO, confirming its move into that country.
Consumer Staples advanced 0.7% following a solid lead from the majors. Woolworths rose 23c, or 0.8% to $27.80, while Wesfarmers gained 38c, or 1.2% to $32.95.
Coca-Cola Amatil extended gains for the sector with a 1.3% rise.
Gamers and media stocks weakened as the Consumer Discretionary sector slid 0.5% below the line.
Crown shed 21c, or 2.5% to $8.09, while Tatts rose 0.8% to $2.39.
Newscorp lost 25c, or 1.4% to $17.70.
Harvey Norman was the best among the retailers, gaining 13c, or 3.4% to $4.01.
A 1.8% fall from Brambles saw the Industrials sector 0.1% in the red. Its shares were trading at $7.24.
Qantas shares rose 4c, or 1.5% to $2.73, overcoming a lunchtime deficit.
Rival Virgin Blue shares tacked on another 3c to 71.5c as the airline extended gains to over 17% in the last week. The company's shares hit 18-month highs along the way, following the announcement of ex-Qantas executive John Borghetti as the new CEO.
Cochlear gained 19c to $65.29 despite early losses, which followed a media report that said the company is working with private equity groups to make a possible offer for the hearing-aid unit of Siemens.
The Healthcare sector dipped 0.2%.
Telstra’s shares slipped again, down 0.7% to $2.92. The broader Telecommunications sector gave up 0.5%.
Around the region, the Nikkei 225 retreated 84.7 to 10,168.5, while the NZSE50 rose 15.0 to 3,213.6. The Straits Times Index lost 7.4 to 2,775.4. The Hang Seng fell 110.5 to 20,766.3.
Spot gold was trading at US$1,135.97 per ounce, while the Aussie was buying US$0.904.
ANZ set to enter Indian market
Australia and New Zealand Banking Group said it is looking to establish a branch in Mumbai following the receival of in-principle approval for a foreign bank licence from the Reserve Bank of India (“RBI”). The company said re-establishing a branch presence in India is a strategic priority as part of ANZ’s objective to become a super regional bank focussed on Australia, New Zealand and Asia Pacific.
At the bell, ANZ shares were down 21c to $23.67.
Linc Energy close to sale, shares rally
Linc Energy updated the market this afternoon, saying that its efforts to sell the coal tenements at Emerald, Pentland and Galilee was progressing albeit more slowly than hoped. Despite discussions continuing, and some at an advanced stage, the company said it was focused on getting fair value for the tenements.
At the finish, Linc Energy shares were up 8c, or 5.4% to $1.56.
Wesfarmers to raise EUR500m on bond issue
Wesfarmers said it is to raise about EUR500 million following the successful pricing of an inaugural issue of bonds under its Euro Medium Term Note programme. The company said the issue consists of notes with a tenor of five years and four months at a margin of 135 bps over the EURO five year mid swap rate, maturing in July 2015.
At the end of the day, Wesfarmers shares were up 38c to $32.95.
Gloucester encourages accepting of Macarthur offer
Gloucester Coal said the Independent Directors of Gloucester confirmed their recommendation that Gloucester shareholders accept Macarthur Coal Limited’s (MCC) takeover offer in the absence of a superior proposal. On 22 December 2009 Macarthur offered to buy all the shares in Gloucester with a choice of either 0.84 Macarthur shares for every one Gloucester share or $8.00 cash for every one Gloucester share.
At the close, Gloucester Coal shares were up 8c to $9.41, while Macarthur Coal shares were trading up 5c to $11.35.
Balance of Goods and Services in $1.1bn deficit
According the Australian Bureau of Statistics, in seasonally adjusted terms, the balance on goods and services was a deficit of $1.176 billion in January 2010, a decrease of $998 million on the revised deficit in December 2009.
