Aussie shares continue to rise
The Aussie stock market failed to replicate the huge gains seen on the international markets, however still edged 0.4% higher at lunch. The strong gains yesterday followed the Eurozone’s $1 trillion debt relief and currency defence package.
This morning the banks continued to rally, while the miner’s were flat ahead of tonight’s budget where the government will confirm the 40% super profits tax.
At noon, the All Ords gained 15.1 to 4,637.3, while the ASX/200 rose 13.7 to 4,613.5. Around 1 billion shares worth around $2.5 billion had changed hands.
The Banks and Financials sector rallied 0.7%.
NAB and Westpac were the strongest performers, up 1.6% and 1.4% to $25.96 and $25.35 respectively.
Meanwhile CBA and ANZ were 0.9% and 0.8% higher.
The big four banks lost an average of around 11% each since Anzac Day through to 7 May.
Investment bank Macquarie rose 30c, or 0.6% to $46.92.
IAG was the weakest of the insurers, up just 1c to $3.76. The insurer came out this morning warning shareholders to ignore unsolicited share purchase offers.
Westfield, meanwhile, added 11c to $12.47 as the Property Trusts sector advanced 0.8%.
BHP Billiton fell 19c to $38.81, while Rio Tinto lost 15c to $68.53 as investors booked profits following strong gains yesterday.
The broader Materials and Resources sector was down 0.6%.
Macarthur Coal continued to lose ground following the decision by US coal giant Peabody to reduce its offer to $15 per share in the light of the government’s super tax.
Gold plays, Newcrest and Lihir were both up 0.3% as the precious metal showed surprising resilience to yesterday’s flight to riskier and more rewarding investments.
Fortescue retreated 4c, or 0.9% to $4.34.
In the materials sector, Incitec Pivot lost 10c, or 3.1% to $3.08. The fertiliser manufacturer received mixed reviews in this morning’s broker reports following a profit announcement yesterday which was bolstered by a reduction in one-off impairments.
Energy stocks were flat despite Woodside, the sector’s largest stock, losing 16c, or 0.4% to $43.30.
Oil Search shed 0.5%, while Santos and Origin both edged 0.3% above the gain line.
Paladin shares were up 3.5% to a tick over $4.00 each as Canadian miner Uranium One continues to snap up shares in the Aussie miner.
Industrials were higher 1% with gainers outnumbering losers three-to-one across the sector.
Qantas rallied 10c, or 3.9% to $2.68, while rival Virgin Blue put on 2c to 53.5c.
Seven Holdings, which moved from the media space down to Industrials following its merger with Westrac, lost 14c, or 2% to $6.99.
Heavyweights Brambles and Leighton were 4c and 30c higher to $7.01 and $34.59 respectively.
Most of the Consumer Discretionary stocks were higher, albeit modestly, with the sector adding 0.7%.
Harvey Norman and JB Hi-Fi put on 0.9% and 1.7% to be among the strongest retailers.
Flight Centre added 58c to $19.13. Media stock Newscorp added 24c, or 1.3% to $18.88.
Consumer Staples added just 0.1%. Woolworths and Wesfarmers cancelled each other out as they were 0.4% either side of the gain line, however Coca-Cola outperformed with a 29c gain to $11.19 per share.
Telstra edged 1c higher to $3.06, while the broader Telecommunications sector was flat.
Around the region, the Nikkei 225 gained 63.1 to 10,593.8, while the NZSE50 added 15.7 to 3,186.3. The Strait Times Index advanced 7.8 to 2,888.3.
Spot gold was trading at US$1,202.60 per ounce, while the Aussie was buying US$0.9020.
Asciano to book $1.1b in impairments
Asciano, this morning said it had decided it would book $1.11b in impairment charges for the second half of the year on the advice of the company’s audit and risk committee. However the port and rail operator said it that its earnings guidance would remain the same for the latter half of the year. Read more…
At midday, Asciano shares were trading up 2c to $1.675.
Ausenco awarded $53m Kestrel contract
Ausenco has been awarded a $53m contract to manage underground, surface infrastructure construction and coal preparation plant upgrade work for the Kestrel Joint Venture’s mine in Central Queensland. The company said separately that it expects to see growth into the second half of 2010 and into 2011 as a result of further improved business conditions and the implementation of sustainable growth initiatives. Read more…
At noon, Ausenco shares were down 18c to $4.10.
IAG wary of unsolicited offers
Insurance Australia Group warned shareholders they may receive unsolicited offers that significantly undervalue their shares. The company said a company trading as Hassle Free Share Sales Pty Ltd has been contacting holders of IAG shares. Read more…
At lunchtime, IAG shares were unchanged at $3.75.
TSI to sell wind farm, tap market for $110m
Transfield Services Infrastructure Fund, which is 47.5% owned by Transfield Services, announced its intention to sell its Mt Millar Wind Farm in South Australia for $191m. The fund also said it would tap the market for $110 million as part of a series of initiatives that are expected to provide financial flexibility and strengthen the fund’s balance sheet. Read more…
At lunch, TSI shares were halted at 90c, while TSE shares were down 4c to $3.98.
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