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The Australian stock market added 0.4% Tuesday as it continues to move towards 2010 highs. The big miners made strong gains, supported by industrial heavyweights and mid-cap miners.

At the end of the day, the All Ords added 19.6 to 4,926.8, while the ASX/200 advanced 19.5 to 4,916.8. Around 2.3 billion shares worth around $5.4 billion had changed hands.

The Materials and Resources sector put on 1.6% 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 $1.03, or 2.4% to $44.41 as it reached agreement with a significant number of customers throughout Asia for shorter-term iron-ore contracts.

Rio Tinto added 86c to $79.25 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 14c, or 2.9% to $4.96, while metals recycler Sims Metal rose 3.4% to $22.01

Mount Gibson Iron and Gindalbie jumped 4.3 and 7.3% respectively. The latter finalised an off-take agreement with JV partner Ansteel at the company’s Karara Iron Ore Project in Western Australia.

Among the small-caps, Doray Minerals spiked 173.3% after saying new gold intersections found at its Andy Well project in Western Australia were ‘incredible’.

Ferrowest shares surged 33.3% after reporting a 390% increase in inferred resources at its Yalgoo Iron Project in Western Australia.

Nufarm slumped 6.5% to $8.12 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 and Santos were both 0.5% stronger, while Oil Search was 0.8% higher.

Uranium miner Paladin climbed 1% to $4.00. Coal miner New Hope added 9c to $5.06.

Origin Energy shed 12c to $16.64. 

Karoon Gas shares rallied 17c, or 2% to $8.47. The company’s share price has spiked by around 87% since a low in early February.

Similar to their global peers, financial stocks struggled as the Banks and Financials sector weakened 0.1%.

Looking at the majors, ANZ and Westpac were 0.1% and 0.2% higher.

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’.

CBA fell 27c, or 0.5% to $56.77.

AXA APH shares were also halted, while AMP gained 7c, or 1.1% to $6.38.

Lend Lease put on 8c to $8.80 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 0.4% higher in a mixed day for the sector.

Meanwhile, broad gains from Industrials stocks sent the sector 0.8% into the black.

Leighton and Brambles rose 1.3% and 0.7% to $39.28 and $7.40 respectively.

Boart Longyear climbed 6.6% to 32.5c.

CSR slid 2c to $1.67 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 0.2%. 

Wesfarmers added 27c to $31.72, while Woolworths lost 14c to $28.24.

Losses of between 1% and 1.2% from sector majors Newscorp, Crown and Tatts sent the Consumer Discretionary sector 0.2% below the gain line.

Retailer JB Hi-Fi rose 28c, or 1.4% to $20.70, easily outperforming it peers.

APN News & Media lost 2c to $2.30 after the trans-Tasman media company said that trading was returning to pre-GFC levels.

Ramsay Health Care lost 15c to $13.83 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 43c to $12.00 following a broker downgrade from Goldman Sachs.

The Healthcare sector rose 0.1%.

Among the telcos, Telstra lost 4c, or 1.3% to $3.02. The Telecommunications sector overall was down 1.2%.

Around the region, the Nikkei 225 advanced 76.8 to 11,063.3, while the NZSE50 slid 1.5 to 3,249.6. The Hang Seng added 127.9 to 21,365.3 and the Strait Times Index fell 0.1 to 2,929.0

Spot gold was trading at US$1,110.00 per ounce, while the Aussie was buying US$0.9188. 

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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 the close, Ramsay shares were down 15c to $13.83.

NAB shares halted
National 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.

At the finish, 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 the bell, Gindalbie shares were trading up 8c to $1.18.

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.

At the end of the day, Nufarm shares were trading down 56c to $8.12.

AWB signs MoU and forms JV with Gavilon
AWB and Gavilon LLC announced they have signed a non-binding Memorandum of Understanding regarding the sale of AWB Geneva and the formation of a 50:50 joint venture of the AWB Australian Commodity Management business. AWB said the signing of the MoU paves the way for the transaction to be completed by June 2010.

At the close, AWB shares were up 5.5c to 95c.

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