Aussie market back in black
March 26, 2010
The local share market, down around 1% at midday, rallied through the afternoon to close in positive territory. The major stocks among the miners and the banks were mostly flat, leaving it to the mid-cap plays to pull the market into positive territory by the close.
At the end of trading the ASX/200 was up 0.2% for the day and 0.4% for the week.
At the close, the All Ords had put on 8.9 to 4,905.2, while the ASX/200 gained 11.5 to 4,896.9. Around 2.7 billion shares worth around $7.7 billion had changed hands.
The Materials and Resources sector added 0.1% despite being down heavily at lunch.
BHP Billiton and Rio Tinto dipped 3c and 25c to $43.29 and $78.39 after the ACCC said yesterday that BlueScope Steel has publicly raised concerns about their proposed iron ore production joint venture in the Pilbara, and possible changes to the expansion plans of existing and potential competitors of the proposed joint venture entity.
Bluescope was up 1c at $2.90, while rival Onesteel also gained 1c to $3.85.
Iluka lost 2c to $4.34 despite JPMorgan upgrading its rating on the stock to “overweight”.
Building materials company James Hardie slumped 1.9% to $7.24, while Brickworks countered with a 2% gain to $12.90.
Gold miner Lihir advanced 7c to $3.09 following a 0.4% rise in the price of the precious metal in New York overnight. Newcrest rose 11c to $32.93.
A 1.2% fall from Woodside led the Energy sector 0.5% into the red after the price of crude slid for the third consecutive day.
Santos gained just 1c to $14.77 as the rumoured takeover target agreed to sell its entire working interest in Evans Shoal in the Bonaparte Basin offshore Northern Australia to Magellan Petroleum Australia Limited for up to $200 million.
Oil Search countered, losing 1c to $5.93, while Paladin shed 2.3%.
Whitehaven and Aquila were 1% and 1.6% lower.
Coal & Allied outperformed to be up 1.1% to $90.00.
Among the big four banks the lowest return on equity was 10% in underlying terms in the last two years according to RBA Governor Glenn Stevens.
CBA, down 90c at lunch, finished up 17c, or 0.3% to $57.37.
Westpac added 0.7% to $27.98, while NAB and ANZ were 0.3% and 0.4% higher.
The Banks and Financials sector gained 0.5%.
QBE rose 19c to $21.23 as the insurer reportedly faces questions about its strategy of making a number of acquisitions to drive earnings growth.
The Industrials sector climbed 0.8% on the back of solid gains from the majors.
Brambles and Leighton advanced 1.5% and 0.9% respectively to $7.39 and $39.17.
MAp Group rallied 2.3% to $3.08, while Virgin soared 5.2%.
Consumer Staples fell 0.3% due largely to a 35c, or 1.1% drop to $31.65 from Wesfarmers.
Woolworths was up 6c to $28.63, while Elders dropped 5.5c to $1.30 as it commissioned Ernst & Young to conduct an independent review of its Forestry assets in light of sector and company specific developments.
Media stocks led the Consumer Discretionary sector to be 0.2% above the line.
Fairfax lost 1c to $1.79. Seven and Consolidated Media slumped 2.5% and 5.4%.
Gamer Aristocrat rallied 17c, or 3.8% to $4.65.
Among the retailers, Myer and David Jones gained 1.2% and 1% respectively. Billabong outperformed with a 2.5% rise.
Healthcare put on 1.5% to be the best performing sector.
CSL added 55c, 1.5% to $36.63, while Sonic and Cochlear advanced 2.9% and 1.9% to $14.36 and $73.38.
Telstra dipped 5c to $3.06 as the Telecommunications sector fell 1.5%.
TPG Telecom added to its recent rally, adding another 2c to $2.20. The stock was trading at $1.475 on March 8.
Around the region, the Nikkei 225 retreated 6.4 to 10,744.8, while the NZSE50 eked out a 6 point gain to 3,231.1. The Straits Times Index lost 4.3 to 2,877.1. The Hang Seng shed 182.8 to 21,026.9.
Spot gold was trading at US$1,104.40 per ounce, while the Aussie was buying US$0.9142.
CBA sells St Andrews to BOQ
Commonwealth Bank of Australia announced it has entered into an agreement with Bank of Queensland to sell the St Andrew’s insurance business, consisting of St Andrew’s Insurance (Australia) Pty Ltd and St Andrew’s Life Insurance Pty Ltd. The company said the sale does not cover St Andrew’s investments, superannuation, retirement income and financial planning businesses which are being integrated into the Commonwealth Bank’s Wealth Management business.
At the end of the day, Bank of Queensland shares were up 2c to $11.77, while CBA shares were up 17c to $57.37.
IAG lowers insurance margin guidance
Insurance Australia Group lowered its FY10 insurance margin guidance to 9.5% - 11.0%, from 10.5% - 12.0% as a result of the impact of the severe weather which struck Perth on 22 March. The company confirmed that, as at the close of business on 25 March 2010, it had received in excess of 13,500 claims.
At the close, IAG shares were up 1c to $3.92.
Suncorp receives 13.5k claims
Suncorp-Metway said its general insurance brands have received approximately 2,500 claims from Cyclone Ului in North Queensland and around 11,000 claims from the Perth storm earlier this week. The company said costs for these events would be determined when more claims in affected areas have been assessed.
At the bell, Suncorp-Metway shares were up 4c to $8.61.
Santos sells Evans Shoal stake for $200m
Santos said it has agreed to sell its entire working interest in Evans Shoal in the Bonaparte Basin offshore Northern Australia to Magellan Petroleum Australia Limited for up to $200 million. The company said Magellan would pay a cash consideration of $100 million, with completion expected to occur in the second half of 2010.
At the finish, Santos shares were up 1c to $14.77.
Elders commissions review of Forestry assets
Elders said it has commissioned Ernst & Young to conduct an independent review of its Forestry assets in light of sector and company specific developments. The company said the review would not examine strategy and operations, where Elders Forestry is well placed.
At the end of the session, Elders shares were down 5.5c to $1.30.
Western Areas prices $125m convertible bond
Western Areas announced the pricing of an issue of $125 million of convertible bonds due 2015. The company said the bonds are to be issued a premium of approximately 28% to the last price of Western Areas shares prior to the launch of $5.18 per share and carry a coupon of 6.4%.
At the close, Western Areas shares were down 12c to $5.06.
ANZ continues off-shore growth
Australia and New Zealand Banking Group is pushing ahead with plans to make the company Australia’s largest foreign bank. As a part of this plan, CEO Mike Smith said ANZ would invest up to US$100 million in capital in Indonesia during 2010 to complete the acquisition of the Royal Bank of Scotland (RBS) retail and commercial businesses in Indonesia and to accelerate organic growth.
At the bell, ANZ shares were up 10c to $25.45.
At the end of trading the ASX/200 was up 0.2% for the day and 0.4% for the week.
At the close, the All Ords had put on 8.9 to 4,905.2, while the ASX/200 gained 11.5 to 4,896.9. Around 2.7 billion shares worth around $7.7 billion had changed hands.
The Materials and Resources sector added 0.1% despite being down heavily at lunch.
BHP Billiton and Rio Tinto dipped 3c and 25c to $43.29 and $78.39 after the ACCC said yesterday that BlueScope Steel has publicly raised concerns about their proposed iron ore production joint venture in the Pilbara, and possible changes to the expansion plans of existing and potential competitors of the proposed joint venture entity.
Bluescope was up 1c at $2.90, while rival Onesteel also gained 1c to $3.85.
Iluka lost 2c to $4.34 despite JPMorgan upgrading its rating on the stock to “overweight”.
Building materials company James Hardie slumped 1.9% to $7.24, while Brickworks countered with a 2% gain to $12.90.
Gold miner Lihir advanced 7c to $3.09 following a 0.4% rise in the price of the precious metal in New York overnight. Newcrest rose 11c to $32.93.
A 1.2% fall from Woodside led the Energy sector 0.5% into the red after the price of crude slid for the third consecutive day.
Santos gained just 1c to $14.77 as the rumoured takeover target agreed to sell its entire working interest in Evans Shoal in the Bonaparte Basin offshore Northern Australia to Magellan Petroleum Australia Limited for up to $200 million.
Oil Search countered, losing 1c to $5.93, while Paladin shed 2.3%.
Whitehaven and Aquila were 1% and 1.6% lower.
Coal & Allied outperformed to be up 1.1% to $90.00.
Among the big four banks the lowest return on equity was 10% in underlying terms in the last two years according to RBA Governor Glenn Stevens.
CBA, down 90c at lunch, finished up 17c, or 0.3% to $57.37.
Westpac added 0.7% to $27.98, while NAB and ANZ were 0.3% and 0.4% higher.
The Banks and Financials sector gained 0.5%.
QBE rose 19c to $21.23 as the insurer reportedly faces questions about its strategy of making a number of acquisitions to drive earnings growth.
The Industrials sector climbed 0.8% on the back of solid gains from the majors.
Brambles and Leighton advanced 1.5% and 0.9% respectively to $7.39 and $39.17.
MAp Group rallied 2.3% to $3.08, while Virgin soared 5.2%.
Consumer Staples fell 0.3% due largely to a 35c, or 1.1% drop to $31.65 from Wesfarmers.
Woolworths was up 6c to $28.63, while Elders dropped 5.5c to $1.30 as it commissioned Ernst & Young to conduct an independent review of its Forestry assets in light of sector and company specific developments.
Media stocks led the Consumer Discretionary sector to be 0.2% above the line.
Fairfax lost 1c to $1.79. Seven and Consolidated Media slumped 2.5% and 5.4%.
Gamer Aristocrat rallied 17c, or 3.8% to $4.65.
Among the retailers, Myer and David Jones gained 1.2% and 1% respectively. Billabong outperformed with a 2.5% rise.
Healthcare put on 1.5% to be the best performing sector.
CSL added 55c, 1.5% to $36.63, while Sonic and Cochlear advanced 2.9% and 1.9% to $14.36 and $73.38.
Telstra dipped 5c to $3.06 as the Telecommunications sector fell 1.5%.
TPG Telecom added to its recent rally, adding another 2c to $2.20. The stock was trading at $1.475 on March 8.
Around the region, the Nikkei 225 retreated 6.4 to 10,744.8, while the NZSE50 eked out a 6 point gain to 3,231.1. The Straits Times Index lost 4.3 to 2,877.1. The Hang Seng shed 182.8 to 21,026.9.
Spot gold was trading at US$1,104.40 per ounce, while the Aussie was buying US$0.9142.
CBA sells St Andrews to BOQ
Commonwealth Bank of Australia announced it has entered into an agreement with Bank of Queensland to sell the St Andrew’s insurance business, consisting of St Andrew’s Insurance (Australia) Pty Ltd and St Andrew’s Life Insurance Pty Ltd. The company said the sale does not cover St Andrew’s investments, superannuation, retirement income and financial planning businesses which are being integrated into the Commonwealth Bank’s Wealth Management business.
At the end of the day, Bank of Queensland shares were up 2c to $11.77, while CBA shares were up 17c to $57.37.
IAG lowers insurance margin guidance
Insurance Australia Group lowered its FY10 insurance margin guidance to 9.5% - 11.0%, from 10.5% - 12.0% as a result of the impact of the severe weather which struck Perth on 22 March. The company confirmed that, as at the close of business on 25 March 2010, it had received in excess of 13,500 claims.
At the close, IAG shares were up 1c to $3.92.
Suncorp receives 13.5k claims
Suncorp-Metway said its general insurance brands have received approximately 2,500 claims from Cyclone Ului in North Queensland and around 11,000 claims from the Perth storm earlier this week. The company said costs for these events would be determined when more claims in affected areas have been assessed.
At the bell, Suncorp-Metway shares were up 4c to $8.61.
Santos sells Evans Shoal stake for $200m
Santos said it has agreed to sell its entire working interest in Evans Shoal in the Bonaparte Basin offshore Northern Australia to Magellan Petroleum Australia Limited for up to $200 million. The company said Magellan would pay a cash consideration of $100 million, with completion expected to occur in the second half of 2010.
At the finish, Santos shares were up 1c to $14.77.
Elders commissions review of Forestry assets
Elders said it has commissioned Ernst & Young to conduct an independent review of its Forestry assets in light of sector and company specific developments. The company said the review would not examine strategy and operations, where Elders Forestry is well placed.
At the end of the session, Elders shares were down 5.5c to $1.30.
Western Areas prices $125m convertible bond
Western Areas announced the pricing of an issue of $125 million of convertible bonds due 2015. The company said the bonds are to be issued a premium of approximately 28% to the last price of Western Areas shares prior to the launch of $5.18 per share and carry a coupon of 6.4%.
At the close, Western Areas shares were down 12c to $5.06.
ANZ continues off-shore growth
Australia and New Zealand Banking Group is pushing ahead with plans to make the company Australia’s largest foreign bank. As a part of this plan, CEO Mike Smith said ANZ would invest up to US$100 million in capital in Indonesia during 2010 to complete the acquisition of the Royal Bank of Scotland (RBS) retail and commercial businesses in Indonesia and to accelerate organic growth.
At the bell, ANZ shares were up 10c to $25.45.
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