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The local share market rallied through the afternoon to finish the day 0.2% higher. The mid-cap miners joined property stocks and the big banks to lead the market upturn.

In economic news, the Melbourne Institute Household Financial Conditions index decreased from 34.5 points in the December quarter to 28.8 points in the March quarter. The first fall in four quarters was largely attributed to the four interest rate rises in the past six months.

At the end of the day, the All Ords had gained 10.8 to 4,877.7, while the ASX/200 put on 9.9 to 4,863.1. Over 2.7 billion shares worth around $7 billion had changed hands.

The Energy sector was 0.3% higher at the close, reversing morning losses.

Woodside put on 45c, or 1% to $46.25, while Origin and Santos weakened 0.8% and 0.9% each to $16.50 and $14.22 respectively.

The price of crude rose 1.5% in New York overnight to a two-month high.

Coal stocks were the big improvers as prices for contract settlements continue to beat expectations.

Whitehaven rose 1.8% to $4.98. Coal & Allied and Centennial Coal climbed 2.7% and 2.8% each. 

Karoon Gas surged 4.6% to $8.33.

Metals prices in London were all remarkably between 1.6% and 1.8% higher as the Materials and Resources sector gained 0.2%.

BHP Billiton slid 14c to $43.16 and Rio Tinto added 29c to $76.99.

BHP said today it believes the iron ore production JV with Rio can be finalised this calendar year. Meanwhile, the company's financial arm won a $2.2 billion court battle with the Australian Taxation Office yesterday after the Federal Court dismissed the ATO’s appeal against a Federal Court decision.

Chemicals and explosives company Orica rose 91c, or 3.5% to $26.72, while Iluka soared 5.9% to $4.14.

The big four banks moved either side of the gain as the Banks and Financials sector advanced 0.4%.

In the positive, ANZ and CBA added 1.1% and 0.8%, while NAB and Westpac were down 0.3% and 0.1%.

The insurers were the main group to weigh on the market, with QBE shedding 46c, or 2.2% to $20.76. IAG and Suncorp-Metway both retreated 1.2%.

Westfield led Property Trusts 1.6% higher. The sector heavyweight added 26c, or 2.2% to $12.10, with most of its peers rallying to late to also post gains.

Goodman Group, the outstanding stock in the sector over the last 18 months, added 2.4%.

A 1.9% drop to $39.10 from Leighton saw that the Industrials sector was 0.3% in the red.

Brambles rose 2c to $7.43, while Qantas and Transurban gained 2c to $2.85 and $5.22.

Corporate Express dropped 2.5% to $5.57 after receiving two broker downgrades in reports this morning. Yesterday, the company recommended shareholders accept US-based Staples offer to buy all the shares in Corporate Express for $5.60 each.

It was a mixed day for Consumer Discretionary stocks, which dropped 0.3% overall.

Crown, Billabong and Newscorp were between 0.5% and 0.7% lower.

Pacific Brands put on 2.7% to $1.355.

Kathmandu shares rallied 9.8% to $1.91 after beating estimates with an $11.3 million loss for the six months to 31 December 2010.

The Consumer Staples sector was up 0.2%, although Wesfarmers and Coca-Cola Amatil were both flat, while Woolworths rose 0.1%.

Telstra gained 4c to $3.17 as the company’s potential split remains in question. The Telecommunications sector added 1.1%.

Around the region, the Nikkei 225 shed 39.5 to 10,807.5, while the NZSE50 put on 19.7 to 3,220.7. The Straits Times Index added 5.0 to 2,924.3. The Hang Seng was up 34.3 to 21418.8

Spot gold was trading at US$1,122.93 per ounce, while the Aussie was buying US$0.9212.          

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Sigma dividends unlikely
Sigma Pharmaceuticals said that reductions in carrying cost of goodwill and other write downs would affect the company's bottom line as it prepares to report half year results, expected to be reported on 23 March. The expected reduction in profit for the company meant that it wasn’t expecting to pay dividends in the second half of the year.

Sigma shares remain suspended at 90c.

CBH directors recommend Toho proposal
A committee of directors of CBH Resources, independent of the company’s largest shareholder Toho Zinc Co., Ltd, said it considers the revised Nyrstar Proposal cannot be successful in its current form and instead endorsed the revised Toho Proposal and recommended it to CBH shareholders, subject to no superior proposal emerging. The committee said that given the voting thresholds that apply under a scheme of arrangement, Nyrstar’s recent revised proposal would clearly fail.

At the close, CBH shares were up 0.5c to 19c.  

BHP confident of completing Rio deal in 2010
BHP Billiton believes it can finalise the Western Australia iron ore production joint venture with Rio Tinto this calendar year. As part of its commitment to increasing its capital expenditure to around $20 billion next year, BHP plans to spend $5.8 billion on the equalisation payment for the JV.

At the bell, BHP shares were trading down 14c to $43.16.

IPO costs slash Kathmandu profits
Kathmandu, which first listed on 13 November 2009, has posted an $11.3 million loss for the six months to 31 December 2010. The major driver for the loss was the company’s costs associated with listing on the ASX, without which the clothing retailer would have posted a $3.6 million profit, from a loss last year of $2 million.

At the end of the day, Kathmandu shares were trading up 17c to $1.91.

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