Miners lead the market higher
January 11, 2010
The Australian market closed 0.8% higher Monday on optimism of an economic recovery. Commodity stocks led gains, while the influential financial sector was also higher.
In economic news, according to the ANZ’s monthly survey job advertisements increased 6% on November to their highest level since May 2007. Advertisements rose 5.2% the previous month.
At the end of the day, the All Ords was up 39.0 to 4,981.2, while the ASX/200 gained 38.6 to 4,950.7. About 2.1 billion shares worth around $3.5 billion had changed hands.
Investors in the Materials and Resources sector focused on positive notes made by brokers on their European and Asian peers, helping the sector up 2.1%.
The gains came despite widespread declines in base metal prices in London on Friday.
Australia’s largest company, BHP Billiton, climbed 1.9% to $44.47, while Rio Tinto put on 99c to $80.00. It is the first time Rio shares had reached the $80 mark since September 2008.
Fortescue bounced back from a bout of profit-taking at the end of last week to lead the miners higher, up 23c, or 4.5% to $5.29. The iron-ore producer has shown volatility this year, with shares up around 20% since 1 January.
Gold miners were also strong with Lihir surging 10c, or 3% to $3.46. Larger rival Newcrest tacked on 62c, or 1.7% to $36.82.
Steelmaker Onesteel and metals recycler Sims Metal rallied 4.6% and 4% to $3.64 and $25.40.
Alumina was also strongly favoured among investors with the company spiking 13c, or 6.7% to $2.06. Its shares are up over 20% since Credit Suisse upgraded its rating on the stock on 14 December setting a price target of $2.00 per share.
The Banks and Financials sector advanced 0.5% as the big four banks managed to finish above the line. NAB was the best performer, up 35c, or 1.3% to $27.25.
Insurers were mixed with QBE and Suncorp-Metway up 21c and 9c to $24.98 and 8.86 respectively.
The Property Trusts sector slid 0.2% as a 6c loss to $12.65 from Westfield was offset by gains elsewhere.
Energy stocks added 0.6%, with Woodside and Santos gaining 1.2% and 0.8% to $49.28 and $14.40.
Riversdale Mining was popular throughout the day, up 24c, or 3.1% to $8.00. In late trade the company announced that the Mozambique Government had granted environmental approval for the Benga Coal project.
Extract Resources rallied 51c, or 6.2% to $8.80 after the uranium explorer released positive results from its flagship Rossing South project.
Coal & Allied put on 4.5% to $89.18.
The Industrials sector rose 0.7% following strong gains from the major players. Leighton and Brambles rose $1.49 and 14c to $41.27 and $7.18 respectively
A major mover in the sector was Auckland International Airport which slumped 2.4% to $1.61 after announcing it would pay $132 million for a stake in two North Queensland airports.
Consumer Staples edged 0.1% higher on a mixed day for the sector. Wesfarmers advanced 9c to $31.55, while Woolworths dipped 9c to $28.00.
Beverage stocks countered one another with Coca-Cola Amatil shedding 12c to $11.17 and Foster’s putting on 6c to $5.45.
A broad decline in the retailers could not halt the Consumer Discretionary sector from adding 0.1%.
JB Hi-Fi lost 40c, or 1.8% to $21.28 and David Jones fell 10c, or 1.9% to $5.07.
Gamers Aristocrat and Crown rose 1.2% and 1.4%.
Among the media stocks Ten led the way, up 3.3% to $1.725.
Telstra lost 0.9% to $3.35,with the Telecommunications sector down by the same amount.
Around the region, the Nikkei 225 advanced 116.7 to 10,798.3, while the Straits Times Index gained 17.0 to 2,939.8. Meanwhile, the NZSE50 lost 6.5 to 3,303.7. The Hang Seng put on 304.6 to 22,601.4.
Spot gold was trading at US$1,153.00 per ounce, and the Aussie was buying US$0.9307.
Ramsay enters French health care market
Ramsay Health Care has made a foray into the French healthcare sector, taking a 57% stake in private hospital operator Groupe Proclif SAS for $142m, the group said Monday. Ramsay said it expected the purchase to deliver a small accretion to core EPS by FY12.
At the end of the day, Ramsay Healthcare shares were up 13c to $11.20.
AIA agrees to purchase North QLD Airports
Auckland International Airport has agreed to purchase a 24.55% stake in North Queensland Airports for $132.8 million from Westpac Banking Corporation. The company said the acquisition of the Cairns and Mackay airports operator was part of its strategy to grow beyond its core business in Auckland.
By the finish, Auckland Airport shares were down 4c to $1.61, while Westpac shares were up 3c to $25.18.
CBH confirms takeover offer
CBH Resources confirmed media speculation that it had received a takeover proposal from Nyrstar NV last month. The company said the conditional, confidential and incomplete proposal valued each CBH share at 13.5c.
At the finish, CBH shares were down 0.5c to 14c.
Bauxite Resources inks deal with Yankuang
Bauxite Resources announced that it has signed a Heads of Agreement with Yankuang Corporation for the joint development and ownership of an alumina refinery in the south west of Western Australia. Under the terms of the agreement, Bauxite said Yankuang would subscribe for an equity stake in BAU and be able to explore and exploit the Australian company’s tenements in the Darling Range.
By the close, Bauxite Resources shares were down 4c to 99.5c.
Santos extends gas options deadline
Santos said that GLNG, its natural gas joint venture with Malaysian giant Petronas, had extended the deadline for agreement of the sale of an extra 1 million tonnes per annum of gas from the project by Petronas. GLNG said the extension was due to discussions with a number of Asian buyers about the sales from the project.
By the end of the day, Santos shares were up 11c to $14.40.
Mirrabooka 1H profit down 24%
Mirrabooka Investments reported a 24% reduction in net profit for the six months to 31 December 2009 compared to the previous corresponding period. The company said its profit totalled $5.6 million, while operating profit dropped 27% to $4 million.
At the final whistle, Mirrabooka shares were up 4c at $2.19.
Nomad downgrades guidance
Nomad Building Solutions shares slumped Monday morning after the modular building manufacturer downgraded its FY10 guidance from a profit of $10-$12m to a $2m loss. The company said it had been negatively impacted by a failure to secure the anticipated level of work, additional costs and continuing pressure on margins.
At the finish, Nomad shares were down 33.5c to 37c.
In economic news, according to the ANZ’s monthly survey job advertisements increased 6% on November to their highest level since May 2007. Advertisements rose 5.2% the previous month.
At the end of the day, the All Ords was up 39.0 to 4,981.2, while the ASX/200 gained 38.6 to 4,950.7. About 2.1 billion shares worth around $3.5 billion had changed hands.
Investors in the Materials and Resources sector focused on positive notes made by brokers on their European and Asian peers, helping the sector up 2.1%.
The gains came despite widespread declines in base metal prices in London on Friday.
Australia’s largest company, BHP Billiton, climbed 1.9% to $44.47, while Rio Tinto put on 99c to $80.00. It is the first time Rio shares had reached the $80 mark since September 2008.
Fortescue bounced back from a bout of profit-taking at the end of last week to lead the miners higher, up 23c, or 4.5% to $5.29. The iron-ore producer has shown volatility this year, with shares up around 20% since 1 January.
Gold miners were also strong with Lihir surging 10c, or 3% to $3.46. Larger rival Newcrest tacked on 62c, or 1.7% to $36.82.
Steelmaker Onesteel and metals recycler Sims Metal rallied 4.6% and 4% to $3.64 and $25.40.
Alumina was also strongly favoured among investors with the company spiking 13c, or 6.7% to $2.06. Its shares are up over 20% since Credit Suisse upgraded its rating on the stock on 14 December setting a price target of $2.00 per share.
The Banks and Financials sector advanced 0.5% as the big four banks managed to finish above the line. NAB was the best performer, up 35c, or 1.3% to $27.25.
Insurers were mixed with QBE and Suncorp-Metway up 21c and 9c to $24.98 and 8.86 respectively.
The Property Trusts sector slid 0.2% as a 6c loss to $12.65 from Westfield was offset by gains elsewhere.
Energy stocks added 0.6%, with Woodside and Santos gaining 1.2% and 0.8% to $49.28 and $14.40.
Riversdale Mining was popular throughout the day, up 24c, or 3.1% to $8.00. In late trade the company announced that the Mozambique Government had granted environmental approval for the Benga Coal project.
Extract Resources rallied 51c, or 6.2% to $8.80 after the uranium explorer released positive results from its flagship Rossing South project.
Coal & Allied put on 4.5% to $89.18.
The Industrials sector rose 0.7% following strong gains from the major players. Leighton and Brambles rose $1.49 and 14c to $41.27 and $7.18 respectively
A major mover in the sector was Auckland International Airport which slumped 2.4% to $1.61 after announcing it would pay $132 million for a stake in two North Queensland airports.
Consumer Staples edged 0.1% higher on a mixed day for the sector. Wesfarmers advanced 9c to $31.55, while Woolworths dipped 9c to $28.00.
Beverage stocks countered one another with Coca-Cola Amatil shedding 12c to $11.17 and Foster’s putting on 6c to $5.45.
A broad decline in the retailers could not halt the Consumer Discretionary sector from adding 0.1%.
JB Hi-Fi lost 40c, or 1.8% to $21.28 and David Jones fell 10c, or 1.9% to $5.07.
Gamers Aristocrat and Crown rose 1.2% and 1.4%.
Among the media stocks Ten led the way, up 3.3% to $1.725.
Telstra lost 0.9% to $3.35,with the Telecommunications sector down by the same amount.
Around the region, the Nikkei 225 advanced 116.7 to 10,798.3, while the Straits Times Index gained 17.0 to 2,939.8. Meanwhile, the NZSE50 lost 6.5 to 3,303.7. The Hang Seng put on 304.6 to 22,601.4.
Spot gold was trading at US$1,153.00 per ounce, and the Aussie was buying US$0.9307.
Ramsay enters French health care market
Ramsay Health Care has made a foray into the French healthcare sector, taking a 57% stake in private hospital operator Groupe Proclif SAS for $142m, the group said Monday. Ramsay said it expected the purchase to deliver a small accretion to core EPS by FY12.
At the end of the day, Ramsay Healthcare shares were up 13c to $11.20.
AIA agrees to purchase North QLD Airports
Auckland International Airport has agreed to purchase a 24.55% stake in North Queensland Airports for $132.8 million from Westpac Banking Corporation. The company said the acquisition of the Cairns and Mackay airports operator was part of its strategy to grow beyond its core business in Auckland.
By the finish, Auckland Airport shares were down 4c to $1.61, while Westpac shares were up 3c to $25.18.
CBH confirms takeover offer
CBH Resources confirmed media speculation that it had received a takeover proposal from Nyrstar NV last month. The company said the conditional, confidential and incomplete proposal valued each CBH share at 13.5c.
At the finish, CBH shares were down 0.5c to 14c.
Bauxite Resources inks deal with Yankuang
Bauxite Resources announced that it has signed a Heads of Agreement with Yankuang Corporation for the joint development and ownership of an alumina refinery in the south west of Western Australia. Under the terms of the agreement, Bauxite said Yankuang would subscribe for an equity stake in BAU and be able to explore and exploit the Australian company’s tenements in the Darling Range.
By the close, Bauxite Resources shares were down 4c to 99.5c.
Santos extends gas options deadline
Santos said that GLNG, its natural gas joint venture with Malaysian giant Petronas, had extended the deadline for agreement of the sale of an extra 1 million tonnes per annum of gas from the project by Petronas. GLNG said the extension was due to discussions with a number of Asian buyers about the sales from the project.
By the end of the day, Santos shares were up 11c to $14.40.
Mirrabooka 1H profit down 24%
Mirrabooka Investments reported a 24% reduction in net profit for the six months to 31 December 2009 compared to the previous corresponding period. The company said its profit totalled $5.6 million, while operating profit dropped 27% to $4 million.
At the final whistle, Mirrabooka shares were up 4c at $2.19.
Nomad downgrades guidance
Nomad Building Solutions shares slumped Monday morning after the modular building manufacturer downgraded its FY10 guidance from a profit of $10-$12m to a $2m loss. The company said it had been negatively impacted by a failure to secure the anticipated level of work, additional costs and continuing pressure on margins.
At the finish, Nomad shares were down 33.5c to 37c.
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