Miners lead market higher as banks weaken
November 16, 2009
Strong gains from the miners outweighed negative returns from the banks as the local market started the week in positive territory. The major indices finished near three-week highs.
At the close, the All Ords had gained 51.2 to 4,773.8, while the ASX/200 added 48.8 to 4,755.2. About 2.7 billion shares worth around $4.6 billion had changed hands.
A mixed day for the metals in London on Friday didn’t translate to any problems for the Materials and Resources sector locally as it surged 3.1%.
BHP Billiton put on $1.09c, or 2.8% to $40.10 as reports surfaced that Canada-based First Quantum Minerals has expressed interest in acquiring in the world’s largest miner’s Ravensthorpe nickel mine.
Rio Tinto outperformed its larger rival, gaining $3.36, or 4.8% to $72.88, the first time the stock has been above $70 per share since 3 October last year.
Lihir Gold jumped 14c, or 4.2% to $3.50 as the price of the precious metal rose rallied almost 1%. Newcrest advanced 83c to $35.40.
Incitec Pivot climbed 17% to $2.79 after the chemical producer posted a full-year loss of $180 million, which was attributed to a $490 million non-cash write-down of Dyno Nobel goodwill.
Nufarm edged 6c higher to $11.88 as the market awaits the Foreign Investment Review Board’s decision on Sinochem’s proposed $2.8 billion takeover of the agrichemical company.
Onesteel traded below the gain for much of the day after the company declined to forecast earnings for the current fiscal year at its AGM this morning. However, the stock closed 5c higher at $3.14.
Bluescope put on 7c to $2.94 as investor snapped up what they saw as a bargain following heavy selling last week.
Energy stocks made ground despite a fall in the price of crude Friday to almost a one-month low. The sector was 2.1% higher.
Woodside added $1.14c, or 2.3% to $50.10, while Origin was 2.7% higher at $16.65.
Linc Energy jumped 3% after extending an agreement with BP Australia allowing BP to buy at least 14,000 barrels per day of Ultra-Clean Diesel.
Stuart Petroleum added 3c, or 6%, to 53c after the company said that it would expand the amount of oil produced by 20% by 2011.
CBA was the best performing of the big four banks, however still finished in the red. The bank reported a $55 million profit from its Malta banking operations. The lender shed 37c to $53.96.
Meanwhile Westpac shed 53c, or 2.1% to $25.29 and NAB lost 39c to $28.50. The Banks and Financials sector weakened 0.5%.
Macquarie edged 27c, or 0.6% higher at $49.12.
Adding to last week’s AXA Asia Pacific acquisition talks AMP put on 11c to $6.41 after announcing it had formed a partnership with China Life Insurance as it looks to expand into Asia.
AXA Asia Pacific rose 4%, or 23c to $5.99 on speculation AMP’s offer for the company would be sweetened.
A 7c fall to $12.31 from Westfield didn’t pull the Property Trust sector down, with the sector putting on 0.5% due to modest gains from other players in the sector.
Dexus put on 1.8% to 83c and Stockland added 4c to $4.09.
Consumer Discretionary stocks were in the black after positive earnings results from peers in the US. In Australia the sector was 2% higher.
Retailers Harvey Norman and JB Hi-Fi rose 2.8% and 2.9% to $4.46 and $22.65 respectively.
Gamer Aristocrat gained 13c to $4.66, while pay-tv operator Austar jumped 5.2% to $1.425.
Fairfax added 5.5c, or 3.3% to $1.73.
Breville shed 1c to $2.27 after rejecting GUD’s takeover offer this morning, citing the offer was underpriced. GUD shares put on 23c to $8.95.
After threatening for some time the price of Wesfarmers shares passed Woolworths shares. Woolworths shares rose 31c to $28.35, while Wesfarmers shares spiked 65c to $28.55.
The Consumer Staples sector gained 1.4%.
Elders rose 5.9% to 18c despite reporting a net loss, including one-off items, of $466.4 million for the 15 months to 30 September 2009.
Industrials advanced 1.2% as gainers outweighed the few stocks below the line. Brambles added 8c to $7.04 and Leighton rose 62c, or 1.7% to $38.15.
Transurban was relatively flat at $5.59 after asking two Canadian pension funds to increase their takeover offers.
Boart Longyear surged 9.7% to 34c and Seek climbed 6.9% to $6.47. On the other side of the line Macquarie Airports lost 1.1% to $2.80.
Telecommunications advanced 1.3% as sector heavyweight Telstra traded 1.5% higher at $3.35.
Modest gains from heavyweights saw the Healthcare sector rise 0.4%. CSL added 17c, or 0.5% to $31.94, while Sonic added 14c to $14.34.
Around the region, the Nikkei 225 shed 5.4 to 9,764.9, while the Straits Times Index put on 46.0 to 2,773.2. Across the Tasman, the NZSE50 added 15.8 to 3,174.0. The Hang Seng rose 330.1 to 22,883.7.
Spot gold was trading at US$1129.62 per ounce, and the Aussie was buying US$0.9351.
Breville rejects GUD takeover offer
Breville Group has decided to reject G.U.D. Holdings' takeover offer. Breville said its board and an independent expert believe that GUD is not offering enough for Breville shares.
At the end of the day, Breville shares were down 1c to $2.27, while GUD shares were up 23c to $8.95.
Stuart Petroleum to lift production
Stuart Petroleum said that oil production output at its flagship Cooper Basin would increase by 20% in 2011, over the current financial year, to around 300,000 barrels. The increase in production is attributable to new exploration activities and a new development well at the Worrior oil field.
At the bell, Stuart Petroleum shares were trading up 3c to 53c.
IPL posts $180m loss on writedowns
Incitec Pivot reported a loss for the full year to 30 September 2009 of $179.9 million, down 130% from the previous year. The company attributed the drop to a $490 million non-cash write-down of Dyno Nobel goodwill.
At the finish, IPL shares were up 17c to $2.79.
Tox Free forecasts profit growth
Tox Free Solutions has requested a trading halt pending a capital raising announcement. The waste management company, at the same time, said that it was expecting EBITDA for the current year of between $26 million and $28 million, up from the $23 million EBITDA reported to 30 June 2009.
Tox Free Solutions shares were halted at $2.48.
Elders reports $466m 15 month loss
Elders reported a net loss, including one-off items, of $466.4 million for the 15 months to the end of September 2009. The result comes as the company moves to a 30 September annual reporting period, in line with other company’s in the agribusiness sector.
At the close, Elders shares were up 1c to 18c.
Tutt Bryant profit down 57%
Tutt Bryant Group reported an NPAT of $6 million for the six months ended 30 September 2009, down 57% on the $13.8 million profit reported on the previous corresponding period (“pcp”). The company said its business outcomes were significantly impacted by subdued customer demand across all divisions, although business activity in the Crane Hire and Heavy Haulage Division was more resilient.
At the bell, Tutt Bryant shares were trading down 1c to 85c.
At the close, the All Ords had gained 51.2 to 4,773.8, while the ASX/200 added 48.8 to 4,755.2. About 2.7 billion shares worth around $4.6 billion had changed hands.
A mixed day for the metals in London on Friday didn’t translate to any problems for the Materials and Resources sector locally as it surged 3.1%.
BHP Billiton put on $1.09c, or 2.8% to $40.10 as reports surfaced that Canada-based First Quantum Minerals has expressed interest in acquiring in the world’s largest miner’s Ravensthorpe nickel mine.
Rio Tinto outperformed its larger rival, gaining $3.36, or 4.8% to $72.88, the first time the stock has been above $70 per share since 3 October last year.
Lihir Gold jumped 14c, or 4.2% to $3.50 as the price of the precious metal rose rallied almost 1%. Newcrest advanced 83c to $35.40.
Incitec Pivot climbed 17% to $2.79 after the chemical producer posted a full-year loss of $180 million, which was attributed to a $490 million non-cash write-down of Dyno Nobel goodwill.
Nufarm edged 6c higher to $11.88 as the market awaits the Foreign Investment Review Board’s decision on Sinochem’s proposed $2.8 billion takeover of the agrichemical company.
Onesteel traded below the gain for much of the day after the company declined to forecast earnings for the current fiscal year at its AGM this morning. However, the stock closed 5c higher at $3.14.
Bluescope put on 7c to $2.94 as investor snapped up what they saw as a bargain following heavy selling last week.
Energy stocks made ground despite a fall in the price of crude Friday to almost a one-month low. The sector was 2.1% higher.
Woodside added $1.14c, or 2.3% to $50.10, while Origin was 2.7% higher at $16.65.
Linc Energy jumped 3% after extending an agreement with BP Australia allowing BP to buy at least 14,000 barrels per day of Ultra-Clean Diesel.
Stuart Petroleum added 3c, or 6%, to 53c after the company said that it would expand the amount of oil produced by 20% by 2011.
CBA was the best performing of the big four banks, however still finished in the red. The bank reported a $55 million profit from its Malta banking operations. The lender shed 37c to $53.96.
Meanwhile Westpac shed 53c, or 2.1% to $25.29 and NAB lost 39c to $28.50. The Banks and Financials sector weakened 0.5%.
Macquarie edged 27c, or 0.6% higher at $49.12.
Adding to last week’s AXA Asia Pacific acquisition talks AMP put on 11c to $6.41 after announcing it had formed a partnership with China Life Insurance as it looks to expand into Asia.
AXA Asia Pacific rose 4%, or 23c to $5.99 on speculation AMP’s offer for the company would be sweetened.
A 7c fall to $12.31 from Westfield didn’t pull the Property Trust sector down, with the sector putting on 0.5% due to modest gains from other players in the sector.
Dexus put on 1.8% to 83c and Stockland added 4c to $4.09.
Consumer Discretionary stocks were in the black after positive earnings results from peers in the US. In Australia the sector was 2% higher.
Retailers Harvey Norman and JB Hi-Fi rose 2.8% and 2.9% to $4.46 and $22.65 respectively.
Gamer Aristocrat gained 13c to $4.66, while pay-tv operator Austar jumped 5.2% to $1.425.
Fairfax added 5.5c, or 3.3% to $1.73.
Breville shed 1c to $2.27 after rejecting GUD’s takeover offer this morning, citing the offer was underpriced. GUD shares put on 23c to $8.95.
After threatening for some time the price of Wesfarmers shares passed Woolworths shares. Woolworths shares rose 31c to $28.35, while Wesfarmers shares spiked 65c to $28.55.
The Consumer Staples sector gained 1.4%.
Elders rose 5.9% to 18c despite reporting a net loss, including one-off items, of $466.4 million for the 15 months to 30 September 2009.
Industrials advanced 1.2% as gainers outweighed the few stocks below the line. Brambles added 8c to $7.04 and Leighton rose 62c, or 1.7% to $38.15.
Transurban was relatively flat at $5.59 after asking two Canadian pension funds to increase their takeover offers.
Boart Longyear surged 9.7% to 34c and Seek climbed 6.9% to $6.47. On the other side of the line Macquarie Airports lost 1.1% to $2.80.
Telecommunications advanced 1.3% as sector heavyweight Telstra traded 1.5% higher at $3.35.
Modest gains from heavyweights saw the Healthcare sector rise 0.4%. CSL added 17c, or 0.5% to $31.94, while Sonic added 14c to $14.34.
Around the region, the Nikkei 225 shed 5.4 to 9,764.9, while the Straits Times Index put on 46.0 to 2,773.2. Across the Tasman, the NZSE50 added 15.8 to 3,174.0. The Hang Seng rose 330.1 to 22,883.7.
Spot gold was trading at US$1129.62 per ounce, and the Aussie was buying US$0.9351.
Breville rejects GUD takeover offer
Breville Group has decided to reject G.U.D. Holdings' takeover offer. Breville said its board and an independent expert believe that GUD is not offering enough for Breville shares.
At the end of the day, Breville shares were down 1c to $2.27, while GUD shares were up 23c to $8.95.
Stuart Petroleum to lift production
Stuart Petroleum said that oil production output at its flagship Cooper Basin would increase by 20% in 2011, over the current financial year, to around 300,000 barrels. The increase in production is attributable to new exploration activities and a new development well at the Worrior oil field.
At the bell, Stuart Petroleum shares were trading up 3c to 53c.
IPL posts $180m loss on writedowns
Incitec Pivot reported a loss for the full year to 30 September 2009 of $179.9 million, down 130% from the previous year. The company attributed the drop to a $490 million non-cash write-down of Dyno Nobel goodwill.
At the finish, IPL shares were up 17c to $2.79.
Tox Free forecasts profit growth
Tox Free Solutions has requested a trading halt pending a capital raising announcement. The waste management company, at the same time, said that it was expecting EBITDA for the current year of between $26 million and $28 million, up from the $23 million EBITDA reported to 30 June 2009.
Tox Free Solutions shares were halted at $2.48.
Elders reports $466m 15 month loss
Elders reported a net loss, including one-off items, of $466.4 million for the 15 months to the end of September 2009. The result comes as the company moves to a 30 September annual reporting period, in line with other company’s in the agribusiness sector.
At the close, Elders shares were up 1c to 18c.
Tutt Bryant profit down 57%
Tutt Bryant Group reported an NPAT of $6 million for the six months ended 30 September 2009, down 57% on the $13.8 million profit reported on the previous corresponding period (“pcp”). The company said its business outcomes were significantly impacted by subdued customer demand across all divisions, although business activity in the Crane Hire and Heavy Haulage Division was more resilient.
At the bell, Tutt Bryant shares were trading down 1c to 85c.
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