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The Australian market fell off its morning highs to close only 0.5% higher at the close Friday. The early rally followed a strong lead from Wall Street and the release of a positive full year result from Macquarie before the open.

Consensus expectations are for another interest rate hike when the RBA makes an announcement next Tuesday.

In economic news, the March Housing Industry Association New Home Sales report revealed an increase of 0.9% in March, up from a 5.2% drop the previous month.   

At the close, the All Ords rose 17.7 to 4,833.8, while the ASX/200 gained 21.8 to 4,807.4. Around 2.3 billion shares worth around $8.4 billion had changed hands.

Macquarie Group jumped $1.94, or 4% to $50.29 after the investment bank beat forecasts with a 21% rise in full year profit to $1.05 billion.

CBA and Westpac were the best of the big four banks, up 1.6% and 0.7% to $58.51 and $27.20 respectively.

NAB shed 1c, while ANZ was flat after featuring heavily in broker reports this morning after releasing half-year results yesterday. Only RBS upgraded its target price on the stock.

Insurers Suncorp-Metway and IAG added 1.5% and 1.6%, while QBE bucked the trend to be down 10c to $21.10.

The Banks and Financials sector advanced 1%.

Westfield led the Property Trusts sector 1.9% above the gain line with a 46c, or 3.7% climb to $12.92 from Westfield.

It was more of a mixed day for the Materials and Resources sector after base metals prices in London dropped due to weak sentiment and poor technicals.

BHP Billiton gained 25c, or 0.6% to $40.75, while Rio Tinto was down 49c to $72.10.

The sector was flat.

Aquarius Platinum jumped 2% to $7.11.

Building materials company James Hardie gained 2.5% to $7.70.

Gold stocks underperformed after the price of the precious metal weakened in New York. Newcrest and Lihir retreated 1.6% and 1.3% to $33.09 and $3.81.

OZ Minerals and Fortescue slumped 3.8% and 3.2%.

The Energy sector advanced 1.1% after the price of crude jumped 2.3% due to a fall in US weekly unemployment claims and on optimism of an economic recovery.

Santos was the major improver, up 31c, or 2.3% to $13.84.

Woodside edged 5c higher to $45.40 as it reiterated full year production guidance.

Origin gained 1.8% to $16.38.

Caltex added 8c to $11.66. The company said yesterday abandoned plans to buy more than 300 Mobil service stations.           

Industrials edged 0.1% higher after sector heavyweights and mid-caps countered one another. This was best summarised by Leighton and Brambles.

Leighton added 33c, or 0.9% to $36.90, while Brambles lost 4c, or 0.5% to $7.26.

Consumer Staples underperformed to be 0.5% in the red. Sector heavyweight and market top-20 company Wesfarmers fell 54c, or 1.8% to $29.29.

Beverage maker Coca-Cola Amatil shed 14c to $11.22. 

Woolworths edged 19c higher to $27.10 after reporting a 4.7% increase in third quarter sales to $12.9 billion compared to the same period last year.

Healthcare slid 0.5% despite ResMed rallying 5.8% to $7.08 after beating expectations with a 22% jump in revenue.

CSL and Sonic were down 1.1% each to $32.39 and $13.80 respectively.

Around the region, the Nikkei 225 climbed 132.6 to 11,057.4, while the NZSE50 advanced 3.9 to 3,286.1. The Strait Times Index rose 8.5 to 2,967.6. The Hang Seng rallied 234.4 to 21,013.3.

Spot gold was trading at US$1,172.60 per ounce, while the Aussie was buying US$0.9306. 

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Origin production and revenue increases
Origin Energy Limited (ORG) reported a 9% increase in production to 24.0 petajoules and a 19% increase in revenue to $142.4 million for the March quarter, compared with the previous corresponding period. The company said the increases were achieved despite scheduled maintenance of the BassGas Project and constraints in production from the Cooper Basin due to flooding in the region. 

At day’s end, Origin shares were trading up 26c to $16.83

QBE issues $850m in Senior Convertible Securities
QBE Insurance Group Limited (QBE) announced the launch of an issue to institutional investors of 20-year zero coupon Senior Convertible Securities raising US$850 million. The company said the funds would be used to repay GBP 310 million from a previous convertible securities issue in 2007 (LYONs IV), with the balance of funds to be used for general corporate purposes. 

QBE shares closed the session down 10c to $21.10.

AWE hit by BassGas maintenance
AWE said that oil and gas revenue for the quarter fell 3% to $78 million as the oil producer was hit by lower production, offset by a small increase in oil sales. Oil and gas production was 1.12 million BOE, down 23% on the previous quarter primarily due to the maintenance shutdown at BassGas, AWE said.

At the bell, AWE shares were trading up 5c to $2.47.

MAp proportionate EPS up 20%
MAp Group said proportionate earnings per share rose 20% in the March quarter to 5.4c compared to the previous corresponding period. In its Management Information Report, the company said EBITDA after corporate expenses increased 15.6% to $186.6 million on proforma pcp.

At the close, MAp shares were up 3c to $3.14.

Woolworths sales up, growth guidance down
Woolworths reported a 4.7% increase in third quarter sales to $12.9 billion compared to the same period last year. The company revised its sales growth guidance for the year downwards to between 3% and 6% due to greater than anticipated impact on sales of low food and liquor inflation and the cycling of the prior year stimulus.

At day’s end, Woolworths shares were up 19c to $27.10.

ResMed quarterly revenue up 22%
ResMed Inc. said revenue for the March quarter was US$278.7 million, a 22% increase over the previous corresponding period. The company said income from operations was US$61.2 million and net income was US$48.8 million, an increase of 16% and 25%, respectively, compared to the pcp.

At the close of the session, ResMed shares were up 39c to $7.08.

Macquarie full year profit jumps 21%
Macquarie Group announced a net profit after tax attributable to ordinary shareholders for the year to 31 March 2010 of $1.05 billion, an increase of 21% on the previous year and slightly ahead of consensus expectations. The company said the result reflects improved market conditions and the diversification and global reach of the businesses.

At the bell, Macquarie shares were trading up $1.94 at $50.29. 

Origin Energy Limited (ORG) reported a 9% increase in production to 24.0 petajoules and a 19% increase in revenue to $142.4 million for the March quarter, compared with the previous corresponding period. The company said the increases were achieved despite scheduled maintenance of the BassGas Project and constraints in production from the Cooper Basin due to flooding in the region.

Executive director, Finance and Strategy, Karen Moses, said the commissioning of the Kupe Gas Project in New Zealand, the increased interest in the Otway Gas project, continuing growth in production from the coal seam gas fields and higher liquid prices resulted in the increased production and sales revenue.

However, Origin said production and sales revenue for the year to 31 March 2010 were 7% and 2% lower respectively.

“This was primarily due to the Australia Pacific LNG transaction which has seen Origin dilute its interest in these CSG assets by 50%,” the company said.

“Adjusting for this impact, year to date production is approximately 5% higher than the prior year.”

Ms Moses said the Australia Pacific LNG project also continued to achieve its milestones.

“Gross production levels have continued to increase, reserves delineation is continuing, the Environmental Impact Statement has been released for public comment, a gas sales agreement with QGC has been finalised which will support the development of both LNG projects and marketing activities are continuing,” Ms Moses said.

As at 1457 AEST, Origin shares were up 25c to $16.34.

QBE Insurance Group Limited (QBE) announced the launch of an issue to institutional investors of 20-year zero coupon Senior Convertible Securities raising US$850 million. The company said the funds would be used to repay GBP 310 million from a previous convertible securities issue in 2007 (LYONs IV), with the balance of funds to be used for general corporate purposes.

QBE said the repayment means that it would not be issuing any shares under LYONs IV.

CEO, Frank O’Halloran, said the refinancing has provided the opportunity to substantially reduce the borrowing costs and to raise additional low cost funds to support QBE’s ongoing growth.

”The annual average cost of our total borrowings is expected to reduce to around 5.7% compared with 6.8% at 31 December 2009,” Mr O’Halloran said.

As at 1423 AEST, QBE shares were down 18c to $21.02.

Aussie shares followed a strong lead from Wall Street overnight to be 0.6% higher by midday. Financials led gains after Macquarie beat profit expectations, while energy stocks were boosted by a rise in the price of crude.  

At noon, the All Ords rose 25.7 to 4,841.8, while the ASX/200 gained 27.5 to 4,813.1. Around 1 billion shares worth around $4.5 billion had changed hands.

Macquarie Group jumped $2.07, or 4.3% to $50.42 after the investment bank beat forecasts with a 21% rise in full year profit to $1.05 billion.

CBA and Westpac were the best of the big four banks, up 1.2% and 1.6% to $27.32 and $58.47 respectively.

NAB added 19c to $28.20, while ANZ was relatively flat after featuring heavily in broker reports this morning after releasing half-year results yesterday. Only RBS upgraded its target price on the stock.

Insurers hovered between 0.6% and 1% higher, however QBE bucked the trend to be down 14c to $21.06.

The Banks and Financials sector advanced 1.1%.

Westfield led the Property Trusts Sector 1.9% above the gain line with a 37c, or 3% climb to $12.83 from Westfield.

It was more of a mixed morning for the Materials and Resources sector after base metals prices in London dropped due to weak sentiment and poor technicals.

BHP Billiton gained 40c, or 1% to $40.90, while Rio Tinto was up a more subdued 16c to $72.75.

Aquarius Platinum jumped 3% to $7.18.

Building materials companies James Hardie, Fletcher Building and Boral gained 2.8%, 1.2% and 1.5% respectively.

Gold stocks underperformed after the price of the precious metal weakened in New York. Newcrest and Lihir retreated 1.3% and 1% to $33.17 and $3.82.

OZ Minerals slumped 3c, or 2.5% to $1.165.

The Energy sector advanced 1.3% after the price of crude jumped 2.3% due to a fall in US weekly unemployment claims and on optimism of an economic recovery.

Santos was the major improver, up 42c, or 3.1% to $13.95.

Woodside and Santos both added 0.9%, while Origin gained 1.6% to $16.35.

Caltex added 10c to $11.68. The company said yesterday abandoned plans to buy more than 300 Mobil service stations.           

Industrials edged 0.1% higher after sector heavyweights and mid-caps countered one another. This was best summarised by Leighton and Brambles.

Leighton added 26c, or 0.7% to $36.83, while Brambles lost 4c, or 0.5% to $7.26.

Consumer Staples underperformed to be 1% in the red. Sector heavyweight and market top-20 company Wesfarmers fell 61c, or 2% to $29.22.

Beverage stocks Coca-Cola Amatil and Foster’s dipped 1.6% and 1.1%.

Woolworths edged 10c higher to $27.01 after reporting a 4.7% increase in third quarter sales to $12.9 billion compared to the same period last year.

Healthcare slid 0.3% despite ResMed rallying 4.9% to $7.02 after beating expectations with a 22% jump in revenue.

CSL and Sonic were down 0.9% and 1% to $32.48 and $13.81 respectively.

Around the region, the Nikkei 225 climbed 150.6 to 11,075.4, while the NZSE50 advanced 9.8 to 3,292.0. The Strait Times Index rose 18.7 to 2,977.8. 

Spot gold was trading at US$1,172.20 per ounce, while the Aussie was buying US$0.9296. 

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AWE hit by BassGas maintenance
AWE said that oil and gas revenue for the quarter fell 3% to $78 million as the oil producer was hit by lower production, offset by a small increase in oil sales. Oil and gas production was 1.12 million BOE, down 23% on the previous quarter primarily due to the maintenance shutdown at BassGas, AWE said.

Half way through the day, AWE shares were trading up 7c to $2.49.

MAp proportionate EPS up 20%
MAp Group said proportionate earnings per share rose 20% in the March quarter to 5.4c compared to the previous corresponding period. In its Management Information Report, the company said EBITDA after corporate expenses increased 15.6% to $186.6 million on proforma pcp.

At midday, MAp shares were up 1c to $3.12.

Woolworths sales up, growth guidance down
Woolworths reported a 4.7% increase in third quarter sales to $12.9 billion compared to the same period last year. The company revised its sales growth guidance for the year downwards to between 3% and 6% due to greater than anticipated impact on sales of low food and liquor inflation and the cycling of the prior year stimulus.

Half way through the day, Woolworths shares were up 8c to $26.99.

ResMed quarterly revenue up 22%
ResMed Inc. said revenue for the March quarter was US$278.7 million, a 22% increase over the previous corresponding period. The company said income from operations was US$61.2 million and net income was US$48.8 million, an increase of 16% and 25%, respectively, compared to the pcp.

By midday, ResMed shares were up 33c to $7.02.

Macquarie full year profit jumps 21%
Macquarie Group announced a net profit after tax attributable to ordinary shareholders for the year to 31 March 2010 of $1.05 billion, an increase of 21% on the previous year and slightly ahead of consensus expectations. The company said the result reflects improved market conditions and the diversification and global reach of the businesses.

By noon, Macquarie shares were trading up $2 at $50.35. 

AWE Limited (AWE) said that oil and gas revenue for the quarter fell 3% to $78 million as the oil producer was hit by lower production, offset by a small increase in oil sales. Oil and gas production was 1.12 million BOE, down 23% on the previous quarter primarily due to the maintenance shutdown at BassGas, AWE said.

”The startup of the BassGas facility in early April will result in a resumption of normal production levels in future quarters,” the company said.

AWE said the decline in profit was offset by a slight increase in realised oil prices to $83 per barrel.

The group said its balance sheet remains strong with cash reserves of $261 million at the end of the quarter.

“AWE has maintained its strong financial base, its base projects are performing well, and ongoing exploration is on target and has the potential to yield large rewards for shareholders. 2010 is a very exciting year for AWE,” managing director, Bruce Wood said.

At 1118 AEST, AWE shares were trading up 6c to $2.48.

AWE Limited (AWE) said that oil and gas revenue for the quarter fell 3% to $78 million as the oil producer was hit by lower production, offset by a small increase in oil sales. Oil and gas production was 1.12 million BOE, down 23% on the previous quarter primarily due to the maintenance shutdown at BassGas, AWE said.

”The startup of the BassGas facility in early April will result in a resumption of normal production levels in future quarters,” the company said.

AWE said the decline in profit was offset by a slight increase in realised oil prices to $83 per barrel.

The group said its balance sheet remains strong with cash reserves of $261 million at the end of the quarter.

“AWE has maintained its strong financial base, its base projects are performing well, and ongoing exploration is on target and has the potential to yield large rewards for shareholders. 2010 is a very exciting year for AWE,” managing director, Bruce Wood said.

At 1118 AEST, AWE shares were trading up 6c to $2.48.

MAp Group (MAP) said proportionate earnings per share rose 20% in the March quarter to 5.4c compared to the previous corresponding period. In its Management Information Report, the company said EBITDA after corporate expenses increased 15.6% to $186.6 million on proforma pcp.

CEO, Kerrie Mather, said traffic growth is firmly re-established at all of the group’s major airports and earnings outperformance continues.

“The main airports in MAp’s portfolio delivered a solid performance in the first quarter, driven by the rebound in passenger numbers, higher loads factors and increased airline capacity,” Ms Mather said.

“The earnings outperformance against traffic across our airports for the quarter is testament to the operational leverage at all three airports, which has been delivered by MAp’s model of active management.”

MAp reported 7.6% traffic growth across the portfolio, with all core airports delivering increased passenger numbers.

The group said portfolio EBITDA margin of 68.4% was up from 64.3% in the pcp and 60.8% for the 12 months to 31 December 2009.

Ms Mather said the International Terminal redevelopment at Sydney Airport is almost complete.

As at 1110 AEST, MAp shares were up 1c to $3.12.

MAp Group (MAP) said proportionate earnings per share rose 20% in the March quarter to 5.4c compared to the previous corresponding period. In its Management Information Report, the company said EBITDA after corporate expenses increased 15.6% to $186.6 million on proforma pcp.

CEO, Kerrie Mather, said traffic growth is firmly re-established at all of the group’s major airports and earnings outperformance continues.

“The main airports in MAp’s portfolio delivered a solid performance in the first quarter, driven by the rebound in passenger numbers, higher loads factors and increased airline capacity,” Ms Mather said.

“The earnings outperformance against traffic across our airports for the quarter is testament to the operational leverage at all three airports, which has been delivered by MAp’s model of active management.”

MAp reported 7.6% traffic growth across the portfolio, with all core airports delivering increased passenger numbers.

The group said portfolio EBITDA margin of 68.4% was up from 64.3% in the pcp and 60.8% for the 12 months to 31 December 2009.

Ms Mather said the International Terminal redevelopment at Sydney Airport is almost complete.

As at 1110 AEST, MAp shares were up 1c to $3.12.

Woolworths Limited (WOW) reported a 4.7% increase in third quarter sales to $12.9 billion compared to the same period last year. The company revised its sales growth guidance for the year downwards to between 3% and 6% due to greater than anticipated impact on sales of low food and liquor inflation and the cycling of the prior year stimulus.

Woolworths said, excluding petrol, sales rose 3.8% to $11.5 billion in the same period.

CEO, Michael Luscombe, said the company’s supermarkets achieved solid sales whilst experiencing no inflation in Australia for the quarter and deflation in New Zealand of 0.5% for the quarter.

“Our General Merchandise and Hotel businesses were impacted by the cycling of the Australian Government’s stimulus packages in the prior year,” Mr Luscombe said.

“Due to our strong customer focus, we were very well positioned to benefit from those payments. Consumer spending has tightened in the quarter reflecting consumer concerns about further interest rate hikes and higher petrol prices than last year.”

Woolworths said Australian Food and Liquor sales increased 3.8% to $8.8 billion, while the Supermarket division as a whole (including New Zealand and petrol) saw a 4.6% rise in sales to $11.2 billion.

Petrol sales for the third quarter, including Woolworths/Caltex Alliance sites, increased by 12.5% to $1.4 billion, reflecting higher petrol prices compared to last year.

The company said BIG W sales declined by 3.7% due to the cycling of the prior year Government stimulus packages with sales in the third quarter last year increasing 9%.

Meanwhile Consumer Electronics sales fell 2.4% and Hotel sales declined by 1.1% in the quarter.

Woolworths said year to date sales growth is 5.3%, which is within previous guidance.

“Sales in the final quarter of the prior year benefited significantly from stimulus payments together with lower interest rates and petrol prices,” the company said.

“The sales for the final quarter of the current year are expected to be impacted significantly by cycling these conditions. In addition, current levels of food and liquor inflation are significantly lower than those historically experienced and this is expected to continue in the final quarter.”

Woolworths reaffirmed net profit after tax guidance for FY10 to be in the range of 8% to 11%.

As at 1051 AEST, Woolworths shares were down 8c to $26.83.

Major brokers were split in their outlook for Australia and New Zealand Banking Group Limited (ANZ) following Australia’s third largest bank earnings report yesterday. ANZ delivered a 36% rise in half-year statutory profit to $1.93 billion.

Citigroup and Deutsche Bank both rate the stock a hold, saying that ANZ’s Asian push will be help the bank as the global economic recovery continues, while cautioning that acquisitions would constrain return-on-equity upside for the company.

Meanwhile, UBS were more straightforward in their outlook saying momentum was building in Asia, rating the stock a ‘Buy’

Goldman Sachs JBWere continue to be the most bullish on the stock, predicting their share price to be more than 20% higher in twelve months, at around $30.00 per share.