The Australian sharemarket moved higher Tuesday morning after Wall Street was boosted by a rise in consumer spending. Resource stocks led gains on the back of a rise in commodity prices as most sector hovered close to the gain line.
At noon, the All Ords added 13.2 to 4,920.4, while the ASX/200 advanced 13.0 to 4,910.3. Around 940 million shares worth around $2.2 billion had changed hands.
The Materials and Resources sector put on 1% following a rise in base metals prices in London. The price of copper rose 3.4% to an 11-week high due to an increase in demand from China.
BHP Billiton gained 58c, or 1.3% to $43.96 as it reached agreement with a significant number of customers throughout Asia for shorter-term iron-ore contracts.
Rio Tinto added 87c to $79.26 a day after a Shanghai court found mining executive Stern Hu guilty of commercial crimes and sentenced him to 10 years in prison.
Fortescue rallied 11c, or 2.3% to $4.93, while metals recycler Sims Metal rose 2.6% to $21.85.
Gold stocks were flat despite a modest rise in the price of the precious metal overnight.
Nufarm slumped 3.9% to $8.34 after posting a $40 million loss for the six months to the end of January after the close of trade yesterday. The agricultural chemical company is anticipating turning this loss into a full-year profit of between $80 million to $100 million.
The stock also received two broker downgrades in reports this morning.
The Energy sector advanced 0.3% as crude futures climbed 2.7% in New York overnight due to renewed confidence of an economic recovery and a weakening greenback.
Woodside, Oil Search and Santos were between 0.5% and 0.7% higher.
Coal miner New Hope gained 1.4% to $5.04, while uranium miners Paladin and Extract Resources climbed 1.8% and 2.1% to $4.03 and $8.10.
Origin Energy shed 10c to $16.66.
Similar their global peers, financial stocks struggled as the Banks and Financials sector weakened 0.1%. Australia's major investment banks reportedly witnessed a 68% fall in fees during the first three months of the year.
Looking at the majors, ANZ, CBA and Westpac were between 0.1% and 0.2% in the red.
NAB shares were halted at the request of the company and pending an announcement regarding the status of contractual negotiations to acquire the Australian and New Zealand businesses of AXA Asia Pacific.
Citigroup also upgraded its rating on the bank’s stock to a ‘buy’.
AXA APH shares were also halted, while AMP gained 10c, or 1.6% to $6.41.
Lend Lease put on 12c to $8.84 after completing its fully underwritten $806 million equity raising by way of a 5 for 22 single Entitlement Offer and the result of the Shortfall Bookbuild.
Property Trusts edged 0.25 higher in a mixed morning for the sector.
Meanwhile, broad gains from Industrial stocks sent the sector 0.7% into the black.
Leighton and Brambles rose 1.3% and 0.8% to $39.28 and $7.41 respectively.
Boart Longyear climbed 4.9% to 32c.
CSR slid 1.5c to $1.675 after appealing against a court decision yesterday that had halted plans to divide the company into two.
Consumer Staples countered one another with the sector up 0.1%.
Wesfarmers added 16c to $31.61, while Woolworths lost 17c to $28.21.
Losses of between 1.1% and 1.4% from sector majors Fairfax, Newscorp and Crown sent Consumer Discretionary 0.3% below the gain line.
Retailers JB Hi-Fi rose 27c, or 1.3% to $20.69.
Ramsay Health Care lost 8c to $13.90 as the company finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. The company also reaffirmed guidance for core NPAT growth of 18%-20% for the group for FY10.
Ansell shed 32c to $12.11 following a broker downgrade from Goldman Sachs, which now rates the stocks at ‘hold’.
The Healthcare sector fell 0.1%
Around the region, the Nikkei 225 advanced 22.8 to 11,009.3, while the NZSE50 gained 9.5 to 3,260.6.
Spot gold was trading at US$1,108.45 per ounce, while the Aussie was buying US$0.9168.
Ramsay finalises French acquisition
Ramsay Health Care said it has finalised its acquisition of a 57% interest in leading French private hospital operator Groupe Proclif SAS after meeting the requisite regulatory approvals. On 11 January this year Ramsay announced it had agreed to purchase the majority stake in Proclif for €87 million, marking Ramsay’s first acquisition in Continental Europe.
At lunchtime, Ramsay shares were down 5c to $13.93.
NAB shares haltedNational Australia Bank requested its shares be placed in trading halt due to a pending announcement regarding the status of contractual negotiations to acquire the Australian and New Zealand businesses of AXA Asia Pacific Limited (AXA). NAB has been in talks with AXA APH French parent, AXA SA, with a deadline for finalising a deal passed yesterday.
NAB shares are halted at $27.70, while AXA APH shares were halted at $6.35.
Gindalbie finalises off-take contract
Gindalbie Metals announced the finalisation of a long-term off-take contract with its joint venture partner, Ansteel, covering the life-of-mine production from the Karara Iron Ore Project in Western Australia. The company said the offtake agreement is worth approximately US$580 million a year, increasing to more than US$2.1 billion a year at the project’s potential production rate.
At midday, Gindalbie shares were trading up 3.5c to $1.135.
Nufarm posts $40m loss, outlook positive
Nufarm reported a loss of nearly $40 million on the back of $35.8 million in writedowns, mostly associated with the company’s glyphosate losses. Looking ahead the company said a recovery was on the way and it was anticipating turning this loss into a full-year profit of between $80 million to $100 million.
By noon, Nufarm shares were trading down 33c to $8.35.