Aussie shares 0.3% higher by noon
November 17, 2009
The local share market jumped higher in early trade following strong gains on Wall Street and a surge in the base metal prices on the London Metal Exchange overnight. For the second consecutive day miners led the way, while the banks weighed.
The dollar opened at fresh 15-month highs, providing fresh headwinds for exporters and Aussie companies which do significant amounts of international work as they repatriate their profits back into Australia.
At lunch, the All Ords had gained 14.1 to 4,787.9, while the ASX/200 added 12.9 to 4,768.1. About 1.4 billion shares worth around $2.1 billion had changed hands.
Among the heavyweight miners Rio Tinto spiked $1.41, or 1.9% to $74.29 on reports it was set to bank over half a billion dollars from the sale of its interest in a US coal company.
BHP Billiton rose 76c, or 1.9% to $40.86. The miner benefited from a spike in base metals, which saw prices on the major materials up by at least 4% overnight.
The Materials and Resources sector climbed 1.7%.
Mount Gibson Iron was a standout on the ASX/200, rallying 7c, or 4.6% to $1.59.
Gold miner Newcrest put on 48c, or 1.4% to $35.88 as the price of the precious metal repeatedly sets new highs.
Bluescope Steel was trading both sides of the gain line Tuesday to be flat at lunch, while Onesteel added 1% to $3.17.
The Energy sector wasn’t as buoyant despite a 3.2% rise in the price of crude overnight. It rose 0.7% overall.
Most of the key stocks were trading close to the gain line, with the exception of Woodside Petroleum which rose 51c, or 1% to $50.60.
The Banks and Financials sector lost 0.7%.
All four of the big banks lost ground Tuesday, with Westpac the worst performer, shedding 43c, or 1.7% to $24.86.
Despite a target price upgrade by Citi, CBA dipped 55c or 1% to $53.41.
The insurers were trading at the gain line or below, with AXA Asia Pacific off around 12c to $5.87.
Investment bank Macquarie Group retreated 8c, or 0.2% to $49.04.
Perpetual spiked $1.10, or 3.3% to $34.31 following broker upgrades from UBS and RBS this morning. The fund manager reported funds under management was $28.8 billion by 31 October 2009, down from $29.3 billion a month earlier.
The Property sector gained 0.3%. Westfield added 8c, or 0.6% to $12.36. Goodman Group rallied 1.5c, or 2.4% to 63c after saying its subsidiary Goodman Group Industrial Fund would undertake a $320 million capital raising.
The Industrials sector lost 0.2% on the back of Leighton shedding 63c, or 1.7% to $37.52.
Brambles was flat. Toll was trading 7c below the line at $8.49, while Qantas added 5c, or 1.8% to $2.79.
Despite the retailer sectors in Japan and the US leading their markets higher, the Australian Consumer Discretionary sector was unchanged at lunch.
JB Hi-Fi, which climbed as much as 2.8%, retreated to be 0.4%, or 8c lower at $22.56.
The gamers were mixed. Crown shed 11c to $8.06, while Aristocrat added 9c to $4.75.
Media stocks were also mixed with Fairfax down 1.5c, or 0.9% to $1.715. Newscorp rose 9c, or 0.6% to $16.14.
The Consumer Staples sector put on 1%. Wesfarmers continued to go from strength to strength, adding 70c, or 2.5% to $29.25. Woolworths added 15c, or 0.5% to $28.50.
Foster's lost 8c to $5.57.
Telstra was off by 1c to $3.34, as the broader Telecommunications sector dipped 0.2%.
The defensive Healthcare sector also performed strongly, adding 0.6%. CSL added 29c, or 0.9% to $32.23 and Cochlear lost 22c to $61.63.
Around the region, the Nikkei 225 rose 31.6 to 9,822.8, while the Straits Times Index eased 0.5 to be at 2,783.3. Across the Tasman, the NZSE50 lost 9.0 to 3,165.0.
Spot gold was trading at US$1139.60 per ounce, and the Aussie was buying US$0.9368.
Perilya taps the market for $55m
Perilya said it has launched a non-renounceable, fully underwritten 1-for-3 rights issue to raise $55m. The miner said that it would potentially apply the funds raised to a stable of exploration and mining prospects.
At noon, Perilya shares were down 1.5c to 50c.
Tianshan and Corvette Resources to merge
Tianshan Goldfields and Corvette Resources have agreed to merge under a scheme of arrangement. The two junior gold miners said that following the merge they would have a market capitalisation of around $60 million, with cash reserves of $30 million.
At lunch, Tianshan shares were up 0.5c to 10.5c, while Corvette shares were down 5c to 20c.
ThinkSmart expects growth in 2010
ThinkSmart reaffirmed its profit guidance for 2009 and said it expected strong EBITDA growth in 2010. The computer and office equipment financing company said the key drivers behind the group delivering on its guidance of positive EBITDA earnings growth in 2009 were the ongoing strength of the group’s Australian operations and the improved performance of UK electrical retailing partner DSG international.
At midday, ThinkSmart shares were up 8c to 76c.
Goodman fund to raise $320m
Goodman Group said its unlisted industrial fund GAIF would undertake a $320m capital raising with the purpose of strengthening its balance sheet. GAIF plans to raise $200 million through a pro rata non-renounceable 1 for 10 rights issue at 75c per share and $120 million through a 12-month mandatory distribution reinvestment plan.
At lunchtime, Goodman Group shares were up 1.5c to 63c.
The dollar opened at fresh 15-month highs, providing fresh headwinds for exporters and Aussie companies which do significant amounts of international work as they repatriate their profits back into Australia.
At lunch, the All Ords had gained 14.1 to 4,787.9, while the ASX/200 added 12.9 to 4,768.1. About 1.4 billion shares worth around $2.1 billion had changed hands.
Among the heavyweight miners Rio Tinto spiked $1.41, or 1.9% to $74.29 on reports it was set to bank over half a billion dollars from the sale of its interest in a US coal company.
BHP Billiton rose 76c, or 1.9% to $40.86. The miner benefited from a spike in base metals, which saw prices on the major materials up by at least 4% overnight.
The Materials and Resources sector climbed 1.7%.
Mount Gibson Iron was a standout on the ASX/200, rallying 7c, or 4.6% to $1.59.
Gold miner Newcrest put on 48c, or 1.4% to $35.88 as the price of the precious metal repeatedly sets new highs.
Bluescope Steel was trading both sides of the gain line Tuesday to be flat at lunch, while Onesteel added 1% to $3.17.
The Energy sector wasn’t as buoyant despite a 3.2% rise in the price of crude overnight. It rose 0.7% overall.
Most of the key stocks were trading close to the gain line, with the exception of Woodside Petroleum which rose 51c, or 1% to $50.60.
The Banks and Financials sector lost 0.7%.
All four of the big banks lost ground Tuesday, with Westpac the worst performer, shedding 43c, or 1.7% to $24.86.
Despite a target price upgrade by Citi, CBA dipped 55c or 1% to $53.41.
The insurers were trading at the gain line or below, with AXA Asia Pacific off around 12c to $5.87.
Investment bank Macquarie Group retreated 8c, or 0.2% to $49.04.
Perpetual spiked $1.10, or 3.3% to $34.31 following broker upgrades from UBS and RBS this morning. The fund manager reported funds under management was $28.8 billion by 31 October 2009, down from $29.3 billion a month earlier.
The Property sector gained 0.3%. Westfield added 8c, or 0.6% to $12.36. Goodman Group rallied 1.5c, or 2.4% to 63c after saying its subsidiary Goodman Group Industrial Fund would undertake a $320 million capital raising.
The Industrials sector lost 0.2% on the back of Leighton shedding 63c, or 1.7% to $37.52.
Brambles was flat. Toll was trading 7c below the line at $8.49, while Qantas added 5c, or 1.8% to $2.79.
Despite the retailer sectors in Japan and the US leading their markets higher, the Australian Consumer Discretionary sector was unchanged at lunch.
JB Hi-Fi, which climbed as much as 2.8%, retreated to be 0.4%, or 8c lower at $22.56.
The gamers were mixed. Crown shed 11c to $8.06, while Aristocrat added 9c to $4.75.
Media stocks were also mixed with Fairfax down 1.5c, or 0.9% to $1.715. Newscorp rose 9c, or 0.6% to $16.14.
The Consumer Staples sector put on 1%. Wesfarmers continued to go from strength to strength, adding 70c, or 2.5% to $29.25. Woolworths added 15c, or 0.5% to $28.50.
Foster's lost 8c to $5.57.
Telstra was off by 1c to $3.34, as the broader Telecommunications sector dipped 0.2%.
The defensive Healthcare sector also performed strongly, adding 0.6%. CSL added 29c, or 0.9% to $32.23 and Cochlear lost 22c to $61.63.
Around the region, the Nikkei 225 rose 31.6 to 9,822.8, while the Straits Times Index eased 0.5 to be at 2,783.3. Across the Tasman, the NZSE50 lost 9.0 to 3,165.0.
Spot gold was trading at US$1139.60 per ounce, and the Aussie was buying US$0.9368.
Perilya taps the market for $55m
Perilya said it has launched a non-renounceable, fully underwritten 1-for-3 rights issue to raise $55m. The miner said that it would potentially apply the funds raised to a stable of exploration and mining prospects.
At noon, Perilya shares were down 1.5c to 50c.
Tianshan and Corvette Resources to merge
Tianshan Goldfields and Corvette Resources have agreed to merge under a scheme of arrangement. The two junior gold miners said that following the merge they would have a market capitalisation of around $60 million, with cash reserves of $30 million.
At lunch, Tianshan shares were up 0.5c to 10.5c, while Corvette shares were down 5c to 20c.
ThinkSmart expects growth in 2010
ThinkSmart reaffirmed its profit guidance for 2009 and said it expected strong EBITDA growth in 2010. The computer and office equipment financing company said the key drivers behind the group delivering on its guidance of positive EBITDA earnings growth in 2009 were the ongoing strength of the group’s Australian operations and the improved performance of UK electrical retailing partner DSG international.
At midday, ThinkSmart shares were up 8c to 76c.
Goodman fund to raise $320m
Goodman Group said its unlisted industrial fund GAIF would undertake a $320m capital raising with the purpose of strengthening its balance sheet. GAIF plans to raise $200 million through a pro rata non-renounceable 1 for 10 rights issue at 75c per share and $120 million through a 12-month mandatory distribution reinvestment plan.
At lunchtime, Goodman Group shares were up 1.5c to 63c.
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