Australian stocks surge 1.4%
November 6, 2009
A 2% climb on Wall Street following positive employment data sent Aussie shares climbing Friday morning. Heavyweight miners and insurers, two sectors which had been heavily sold in recent sessions, outperformed.
In its quarterly statement on monetary policy, the Reserve Bank increased its forecast for economic growth in 2010. The RBA suggested more interest rate hikes are likely.
In economic news, according to the Australian Industry Group-Housing Industry Association construction performance increased 0.1 points to 50.9 index points in October.
At noon, the All Ords had rallied 57.8 to 4,577.0, while the ASX/200 put on 57.4 to 4,565.4. About 1.1 billion shares worth around $1.7 billion had changed hands.
The big four banks were all in the black, with Westpac the best performer adding 56c, or 2.2% to $26.45.
The sector advanced 1.5%.
Investment bank Macquarie rose 2.4% to $48.79, while bourse operator ASX gained 48c to $33.30 following a broker upgrade.
Insurers QBE and AXA Asia-Pacific rallied 4.2% and 4.4% to $22.41 and $4.26 respectively.
Materials and Resources gained 1.5%. In sector news, the FIRB has approved $285.8 million of Chinese investment in Australia's resources sector this week.
Diversified mining giant BHP Billiton added 1.4% to $36.94, while rival Rio Tinto put on 1.5% to $63.53.
Alumina rose 5c to $1.58 after the price of aluminium was the only base metal to rise on the LME overnight.
Bluescope added 5c to $2.95 as reports surfaced that global mining giant Xstrata’s lawsuit against the Australian steel maker is unlikely to be a precursor to widespread legal action.
Sims Metal jumped 5.2% to $21.15. Incitec Pivot climbed 13c, or 5.2% to $2.64 after JPMorgan upgraded its recommendation on the stock citing recent share price underperformance.
Building materials companies James Hardie and Boral surged 3% and 4.3% to $7.21 and $5.58.
A drop in the price of crude could not stop Energy stocks from making ground. The sector was 1.1% higher.
Woodside added 43c to $47.83, while coal miners Whitehaven and Aquila rose 2.9% each.
Linc Energy surged 10.7% to $1.555 after the company announced positive results from exploration drilling near Orroroo in South Australia.
Worley Parsons climbed $1.57 to $27.12.
Industrials outperformed other sectors, having put on 2.3%. Leighton rallied $1.87, or 5.5% to $35.68 after yesterday announcing a 25% rise in first quarter profit and giving a positive outlook.
Transurban added to yesterday’s rally with a 6.1% gain to $5.56 on the back of a price target upgrade from UBS.
Toll put on 18c to $8.32 after announcing the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems this morning.
Consumer Staples edged 0.2% higher after an indifferent morning. Woolworths added 21c to $27.87, while Wesfarmers dipped slightly lower to be trading at $26.18.
GrainCorp shed 3.1% to $6.57 as it announced the successful completion of a retail bookbuild. The grain handler also received a broker upgrade in reports this morning.
Retailers sent Consumer Discretionary 0.8% higher. David Jones climbed 23c, or 4.4% to $5.42 and Harvey Norman rallied 11c to $4.11.
Media company Fairfax gained 4c to $1.625.
Goodman Group was the best of the Property Trust majors having jumped 4.3% to 60c. The sector was 0.8% higher.
A 2c rise to $3.19 from Telstra saw the Telecommunications sector 0.4% above the line.
Around the region, the Nikkei 225 gained 119.7 to 9,837.1, while the Straits Times Index put on 41.5 to 2,670.9. Across the Tasman, the NZSE50 added 18.5 to 3,163.0.
Spot gold was trading at US$1089.05 per ounce, and the Aussie was buying US$0.9115.
Linc to tap new coal find
Linc Energy shares jumped about 13% in morning trade Friday after the company announced positive results from exploration drilling near the town of Orroroo in South Australia. The company said the results of their study, as indicated by a third party company, showed a significant coal mineralisation target in accordance with the JORC Code of between 1 and 1.3 billion metric tonnes.
At noon, Linc Energy shares were trading up 15c to $1.555.
ResMed reports record quarterly result
ResMed Inc. announced a record quarterly revenue and net income of US$247 million and US$42.1 million respectively for the three months to September 30, 2009. The company said revenue and income were up 13% and 50% on the previous corresponding period.
At midday, ResMed shares were up 12c to $5.52.
Telecom maintains guidance
Telecom Corporation of New Zealand reported a drop in first quarter EBITDA that was in line with previous guidance of 4.1% to NZ$447 million versus the previous corresponding period (“pcp”). The company also maintained its FY10 adjusted EBITDA guidance at -1% to +2% compared with FY09.
At lunchtime, Telecom shares were trading up 2c to $1.99.
Toll aquires Logistic Distribution Systems
Toll Holdings announced the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems (“LDS”). Toll said LDS provides an integrated international sea and air freight forwarding service as well as transport and logistics services.
Half way through the day, Toll shares were trading up 21c to $8.35.
In its quarterly statement on monetary policy, the Reserve Bank increased its forecast for economic growth in 2010. The RBA suggested more interest rate hikes are likely.
In economic news, according to the Australian Industry Group-Housing Industry Association construction performance increased 0.1 points to 50.9 index points in October.
At noon, the All Ords had rallied 57.8 to 4,577.0, while the ASX/200 put on 57.4 to 4,565.4. About 1.1 billion shares worth around $1.7 billion had changed hands.
The big four banks were all in the black, with Westpac the best performer adding 56c, or 2.2% to $26.45.
The sector advanced 1.5%.
Investment bank Macquarie rose 2.4% to $48.79, while bourse operator ASX gained 48c to $33.30 following a broker upgrade.
Insurers QBE and AXA Asia-Pacific rallied 4.2% and 4.4% to $22.41 and $4.26 respectively.
Materials and Resources gained 1.5%. In sector news, the FIRB has approved $285.8 million of Chinese investment in Australia's resources sector this week.
Diversified mining giant BHP Billiton added 1.4% to $36.94, while rival Rio Tinto put on 1.5% to $63.53.
Alumina rose 5c to $1.58 after the price of aluminium was the only base metal to rise on the LME overnight.
Bluescope added 5c to $2.95 as reports surfaced that global mining giant Xstrata’s lawsuit against the Australian steel maker is unlikely to be a precursor to widespread legal action.
Sims Metal jumped 5.2% to $21.15. Incitec Pivot climbed 13c, or 5.2% to $2.64 after JPMorgan upgraded its recommendation on the stock citing recent share price underperformance.
Building materials companies James Hardie and Boral surged 3% and 4.3% to $7.21 and $5.58.
A drop in the price of crude could not stop Energy stocks from making ground. The sector was 1.1% higher.
Woodside added 43c to $47.83, while coal miners Whitehaven and Aquila rose 2.9% each.
Linc Energy surged 10.7% to $1.555 after the company announced positive results from exploration drilling near Orroroo in South Australia.
Worley Parsons climbed $1.57 to $27.12.
Industrials outperformed other sectors, having put on 2.3%. Leighton rallied $1.87, or 5.5% to $35.68 after yesterday announcing a 25% rise in first quarter profit and giving a positive outlook.
Transurban added to yesterday’s rally with a 6.1% gain to $5.56 on the back of a price target upgrade from UBS.
Toll put on 18c to $8.32 after announcing the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems this morning.
Consumer Staples edged 0.2% higher after an indifferent morning. Woolworths added 21c to $27.87, while Wesfarmers dipped slightly lower to be trading at $26.18.
GrainCorp shed 3.1% to $6.57 as it announced the successful completion of a retail bookbuild. The grain handler also received a broker upgrade in reports this morning.
Retailers sent Consumer Discretionary 0.8% higher. David Jones climbed 23c, or 4.4% to $5.42 and Harvey Norman rallied 11c to $4.11.
Media company Fairfax gained 4c to $1.625.
Goodman Group was the best of the Property Trust majors having jumped 4.3% to 60c. The sector was 0.8% higher.
A 2c rise to $3.19 from Telstra saw the Telecommunications sector 0.4% above the line.
Around the region, the Nikkei 225 gained 119.7 to 9,837.1, while the Straits Times Index put on 41.5 to 2,670.9. Across the Tasman, the NZSE50 added 18.5 to 3,163.0.
Spot gold was trading at US$1089.05 per ounce, and the Aussie was buying US$0.9115.
Linc to tap new coal find
Linc Energy shares jumped about 13% in morning trade Friday after the company announced positive results from exploration drilling near the town of Orroroo in South Australia. The company said the results of their study, as indicated by a third party company, showed a significant coal mineralisation target in accordance with the JORC Code of between 1 and 1.3 billion metric tonnes.
At noon, Linc Energy shares were trading up 15c to $1.555.
ResMed reports record quarterly result
ResMed Inc. announced a record quarterly revenue and net income of US$247 million and US$42.1 million respectively for the three months to September 30, 2009. The company said revenue and income were up 13% and 50% on the previous corresponding period.
At midday, ResMed shares were up 12c to $5.52.
Telecom maintains guidance
Telecom Corporation of New Zealand reported a drop in first quarter EBITDA that was in line with previous guidance of 4.1% to NZ$447 million versus the previous corresponding period (“pcp”). The company also maintained its FY10 adjusted EBITDA guidance at -1% to +2% compared with FY09.
At lunchtime, Telecom shares were trading up 2c to $1.99.
Toll aquires Logistic Distribution Systems
Toll Holdings announced the acquisition of Dubai based international freight forwarding company Logistic Distribution Systems (“LDS”). Toll said LDS provides an integrated international sea and air freight forwarding service as well as transport and logistics services.
Half way through the day, Toll shares were trading up 21c to $8.35.
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