Market edges lower
The Australian sharemarket finished lower Thursday as losses from a few of the heavyweight miners and financials eventually outweighed strong gains seen among other blue chips. The broader indices only moved as much as 20 points from the gain line the entire session.
According to the Australian Bureau of Statistics, Australia's unemployment rate rose to an expected seasonally adjusted 5.3% in February, from a revised 5.2% in January. The number of employed rose 400 in absolute terms.
At the bell, the All Ords had lost 4.3 to 4,825.5, while the ASX/200 dipped 5.8 to 4,814.2. Over 2.3 billion shares worth around $4.6 billion had changed hands.
The Materials and Resources sector slid 0.2%, reflecting market heavyweight BHP Billiton, which weakened 23c to $43.01.
Rio Tinto edged 6c higher to $75.41.
Fortescue rallied 10c, or 2.1% to $4.92 and Atlas Iron jumped 15c, or 6.5% to $2.46.
Explosives and chemicals company Orica climbed 56c, or 2.2% to $25.87, the day after saying it would take a $192 million hit on a tax ruling.
Incitec Pivot put on 8c, or 2.3% to $3.59.
The Energy sector edged 0.3% lower as Woodside slipped 22c to $45.27.
Oil Search, Santos and Origin were all less than 0.7% below the gain line.
Uranium specialist Extract Resources shed 22c, or 3% to $7.11, extending losses from yesterday, while Caltex gained 28c, or 2.6% to $11.14.
The big four banks were mixed, with ANZ and CBA edging higher and NAB a similar amount the other side of the line.
Westpac shed 33c, or 1.2% to $27.00.
The Banks and Financials sector weakened 0.3%.
It was more positive for Macquarie, which rose 35c, or 0.7% to $49.40.
The insurers were out of favour with investors. QBE lost 35c, or 1.6% to $21.06.
Property Trusts finished 0.4% lower in a relatively uneventful day for the sector.
Lend Lease outperformed with a 3.7% gain to $8.66.
Among Industrial stocks Leighton was 65c, or 1.7% stronger at $39.65. The infrastructure builder said its subsidiary, Leighton Asia, had secured a $463 million Hong Kong rail contract.
Macmahon Holdings said it would partner with Leighton on around $115 million worth of work on the same contract. Its shares were up 4%.
The sector was 0.6% lower.
It was a mix across the rest of the sector. Brambles was down 0.8%, while Downer EDI and Seek gave up 2.5% and 2.6% to $7.68 and $7.41 respectively.
Transpacific Industries slumped 4% to $1.325 and CSR gained 3.5c to $1.70 on several broker upgrades.
The Consumer Discretionary sector rose 0.2%. Myer shares fell 3c to $3.44 after the department store said profit was up 38% to $115 million. The group however offered a cautious outlook.
Oroton Group was a standout with an 8.8% jump, after saying its first half profit was 24% stronger.
Elsewhere in the sector, gamer Tatts put on 2.5% to $2.47.
In the Consumer Staples field, Wesfarmers and Woolworths were 6c and 16c stronger, with the sector tacking on 0.2%. The stocks closed at $32.29 and $28.36 respectively.
Grain handler Viterra rallied over 3.6% after reporting solid first quarter earnings.
Telstra extended recent gains with a 2.7% rise to $3.07, while the broader Telecommunications sector gained 2.4%.
Around the region, the Nikkei 225 added 51.7 to 10,615.6, while the NZSE50 edged 2.7 lower 3,223.5. The Straits Times Index lost 3.7 to 2,858.6. The Hang Seng fell 74.1 to 21,134.2.
Spot gold was trading at US$1,107.95 per ounce, while the Aussie was buying US$0.9145.
Leighton sub secures $463m rail contract
Leighton said its subsidiary, Leighton Asia, had been awarded a $463m contract to construct the Tse Uk Tsuen to Shek Yam section of the Guangzhou – Shenzhen – Hong Kong Express Rail Link. The work is for tunnels and ventilation buildings and is expected to begin immediately, with completion slated for 2015.
By the finish, Leighton shares were up 65c to $39.65.
Meanwhile, Macmahon Holdings said that it had entered an agreement with Leighton Asia for some of the work. The company said the estimated value of the work is $115 million.
At the end of the day, Macmahon shares were up 3c to 78c.
Myer posts 38% hike in profit
Myer said its profit for the six months to 23 January 2010 jumped 38% to $115m, not including the costs of its recent IPO. The result came on the back of a more modest 2% rise in sales to $1.797 billion.
At the finish, Myer shares were down 3c to $3.44.
Cooper Energy expects flooding to impact operations
Cooper Energy said flooding in the Cooper Basin is expected to have some impact on its operations in South Australia due to roads being cut-off and oil fields being isolated. The company said over 80% of its production is delivered to market by the PEL92 flow-line and this production is continuing.
By the end of the day, Cooper Energy shares were down 1.5c to 49.5c.
Oroton 1H profit up 24%
OrotonGroup reported a net profit of $15.4m for the six months ended 23 January 2010, an increase of 24% on the previous corresponding period. However, the company said it was expecting challenging conditions in the second half.
At the close, Oroton shares were up 55c to $6.83.
Pharmaxis completes Phase II study
Pharmaxis announced the successful completion of a Phase IIa dose profiling study with its new anti-inflammatory agent ASM8 in patients with allergic asthma. The company said the study met the pre-defined primary efficacy and safety endpoints and ASM8 was found to be safe at all doses tested and particularly effective at an inhaled dose of 8mg once per day.
By the end of the day, Pharmaxis shares were up 7c to $2.59.
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