Local shares up 0.7%
The Australian sharemarket closed 0.7% higher Wednesday on the back of a strong lead from global markets and a rise in metal prices. As a result resource and industrial stocks led gains, while property trusts and some of the smaller sectors lagged.
In economic news, according the Australian Bureau of Statistics, our GDP grew 0.9% in the December quarter 2009, after growing 0.3% in the September quarter.
“Growth in the expenditure measure of GDP was driven by a 3.5% increase in private investment, a 10.2% increase in public investment and a 0.7% increase in household expenditure,” the ABS said.
”Offsetting these increases was a fall in net exports.”
At the bell, the All Ords was up 33.9 to 4,743.8, while the ASX/200 gained 33.8 to 4,735.7. Over 2.4 billion shares worth around $5.4 billion had changed hands.
The mid-cap commodity players were muscular, with MacArthur Coal, Incitec Pivot and Lihir Gold all rising between 3.8% and 4.9%.
Fortescue and Sims Metal rose 3.2% and 3.7% to $4.85 and $20.50, while Mount Gibson Iron surged 6.2% to $1.715.
They were assisted by gains of $1.85, or 2.6% to $73.87 by Rio Tinto and 58c to $41.67 for BHP Billiton.
Steel maker Bluescope extended gains into a fourth day, adding 8c to $2.66.
Mirabela Nickel was 4.6% stronger after the price of nickel jumped 3.7% higher in London overnight.
The Materials and Resources sector gained 1.8%.
NAB was the best performer of the big banks, up 60c, or 2.3% to $26.20 as it became the last of the big four lenders to pass on a 25 basis point lift to interest rates following the Reserve Bank’s decision yesterday.
Westpac, which this morning also matched the RBA’s 25 basis interest rate hike, added 26c to $26.99.
The Banks and Financials was 0.3% up.
Among the insurers, QBE and IAG slipped 72c and 10c to $20.38 and $3.99 after both went ex-div today.
Suncorp-Metway put on 1.3% to $8.51.
The Property Trusts sector was down 0.9%, led by a 21c, or 1.7% fall to $12.05 from Westfield.
The Energy sector was 0.2% above the line, with only modest gains to both Woodside and Origin.
Oil Search slumped 11c, or 2.1% to $5.25. The PNG LNG Project - of which Oil Search and Santos are part of – awarded vessel contracts to Mitsui OSK Lines.
Santos shares added 1c to $13.41.
Aquila Resources climbed 52c, or 5.3% to $10.34.
The Consumer Discretionary was 1.3% stronger.
Retailers David Jones, Harvey Norman and JB Hi-Fi added between 1.8% and 2.1%, while Billabong bucked the trend by losing 1.7% to $10.10.
Elsewhere, Fairfax put on 5.5c, or 3.4% to $1.695, while Seven rallied 4% to $7.84.
Tatts Group jumped 7c, or 3% to $2.37, retrieving some of yesterday's heavy losses.
The Consumer Staples sector was 0.3% above the gain line. Wesfarmers added 47c, or 1.5% to $32.57 as Woolworths countered, shedding 19c, or 0.7% to $27.57.
Goodman Fielder dropped 6c, or 3.8% to $1.51 as it went ex-div.
The Industrials sector gained 1.5% following a positive day for air transport related stocks.
Virgin Blue soared 4.5c, or 7% to 68.5c, while MAp Group rose 4.4% to $3.32. Qantas finished 0.4% in the red.
Brambles gained 26c, or 3.7% to $7.37 and Seek jumped 4.5% gain to $7.47.
Elsewhere, Telstra came off historic lows, edging 1c higher to $2.94. The broader Telecommunications sector rose 0.4%.
Around the region, the Nikkei 225 added 15.5 to 10,237.3, while the NZSE50 rose 15.3 to 3,198.5. The Straits Times Index shed 2.4 to 2,769.8. The Hang Seng had gained 5.9 to 20,192.0.
Spot gold was trading at US$1,134.60 per ounce, while the Aussie was buying US$0.9052.
Coffey makes a further two acquisitions
Coffey International announced the acquisition of Global Justice Systems and Libra Advisory Group Limited for a total of $8.32m. The company said both have been funded from existing cash reserves and have earn-outs based on performance over the next two years.
At the end of the day, Coffey shares were up 1.5c to $1.865.
Ausenco awarded $9.6m EPCM contract
Ausenco said it has been awarded a $9.6m Engineering, Procurement and Construction Management (EPCM) contract for the magnetite extraction plant at Xstrata Copper’s Ernest Henry Mining (“EHM”) operation located in north west Queensland. The diversified engineering services and project management group said the plant forms part of Xstrata’s $589 million development of the underground mine and magnetite processing operation.
By the close, Ausenco shares were up 5c to $3.96.
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