Shares extend rally into afternoon
March 17, 2010
The Australian sharemarket rallied Wednesday to eventually close 1.2% higher. The market was buoyed by better than expected housing data and a positive lead from Wall Street after the US Fed decided to keep interest rates unchanged.
At the end of the day, the All Ords had added 57.8 to 4,866.9, while the ASX/200 gained 56.0 to 4,853.2. Over 2.6 billion shares worth around $5.5 billion had changed hands.
Broad gains were seen across most sectors, including the Materials and Resources sector, which put on 1.6%.
Mining heavyweights BHP Billiton and Rio Tinto added 1.3% and 1.6% to $43.30 and $76.70 respectively as base metal prices rose in London overnight.
In a quiet news day, the gold miners rose similar amounts. Lihir added 5c to $3.11, while Newcrest put on 61c to $34.13.
Steelmaker Onesteel and aluminium producer Alumina climbed 3.5% and 3.9% to $3.82 and $2.90.
Elsewhere homebuilders were strong on the back of local data and as the US market appears to be stabilising. James Hardie advanced 26c, or 3.5% to $7.67, while Boral rose 13c, or 2.4% to $5.52.
According to the the Australian Bureau of Statistics dwelling commencements climbed by a seasonally-adjusted 15.1% in the December quarter. Work was started on just over 40,000 homes in the period, the largest increase in 18 months.
The Banks and Financials sector gained 0.9%.
Westpac and ANZ added 1.6% and 1.9% to $27.34 and $24.61 to be the best of the big four banks.
Macquarie was 73c higher to $49.37, while insurer AMP led that sub-sector higher with a 12c gain to $6.27.
Platinum Asset Management jumped 5.5% to $5.55.
Westfield shares were 0.3% weaker to $11.84 as the Property Trusts dragged to finish 0.7% in the red.
Mirvac shed 2.5c, or 1.7% to $1.475.
Energy stocks followed their international peers higher with a 2.3% rise. Uranium specialists were standouts with Rio Tinto controlled ERA rallying 5.6% and Paladin climbing 3.9%.
Extract Resources was 5.2% stronger.
Meanwhile, Woodside rose $1.04 to $45.80 and Origin added 33c to 16.65. The latter said it has increased its interest in the Otway Gas Project to 67% following completion of the acquisition of an additional 36% interest from Woodside.
Oil Search gained 22c, or 3.9% to $5.88, while WorleyParsons put on $1.01, or 4.0% to $26.20.
The Consumer Discretionary stocks rose 1.4%. Billabong surged 44c to $10.74 following yesterday’s sell-off after going ex-dividend.
David Jones shares were up 6c to $5.13 despite the department store posting a record first half profit of $100.5 million and saying full year profit growth was expected to be between 5% and 10%.
Among the gamers, Crown put on 27c, or 3.4% to $8.32.
Consumer Staples was flat as Wesfarmers retreated 45c, or 1.4% to $31.10, while Woolworths gained 44c, or 1.6% to $28.72.
The major mover, however, was AWB which tumbled 12c, or 11.4% to 93.5c after downgrading its profit guidance.
The Industrials sector was 1.6% stronger as most stocks traded above the gain line.
Toll and Asciano were 2.4% and 2.9% higher, while Leighton climbed $1.48, or 3.9% to $39.85.
Waste services company, Transpacific put on 3.5c, or 2.7% to $1.33, while Bradken also rallied, up 37c or 5% to $7.70.
Telstra continued its recovery from all-time lows of $2.88 earlier this month, adding 2c, or 0.6% to $3.13, while the broader Telecommunications sector put on 0.5%.
Around the region, the Nikkei 225 rose 91.4 to 10,813.1, while the NZSE50 fell 6.8 to 3,201.0. The Straits Times Index gained 18.1 to 2,914.5. The Hang Seng climbed 330.7 to 21,353.6.
Spot gold was trading at US$1,127.70 per ounce, while the Aussie was buying US$0.9186.
David Jones posts record profit
David Jones reported a post-tax profit for the six months to 31 January 2009 of $100.5m, up 10.2% from the previous corresponding figure. Just one year out from the GFC the department store said the result was the highest first half profit since the company listed on the ASX 15 years ago.
At the close, David Jones shares were up 6c to $5.13.
AWB downgrades full year guidance
AWB downgraded its forecast profit before tax and significant items for the full year ending 30 September 2010 from previous guidance of $115m to $140m to a range of $85m to $110m. The agribusiness attributed the decrease to the expected reduction in annualised profit before tax of $7 million to $10 million due to the sale of the Landmark Financial Services loan and deposit books.
At the end of the day, AWB shares were down 12c to 93.5c.
Macmahon awarded $190m contract
Macmahon Holdings announced last night that it has been awarded a three-year contract valued at over $190m by Syntech Resources to develop and operate the new Cameby Downs coal mine in the Surat Basin in Queensland. The company said the contract would see it undertake all mining activities for Stage 1 of the project, including planning, mine development, waste stripping, coal mining, coal preparation and train loading.
At the close, Macmahon shares were up 1.5c to 75.5c.
Origin's interest in Otway Gas Project now 67%
Origin Energy increased its interest in the Otway Gas Project to 67% following completion of the acquisition of an additional 36% interest from Woodside Energy. The company said the purchase price was $520 million, which remains subject to a further adjustment on the settlement of final joint venture accounts up to the completion date.
By the close of trade, Origin shares were up 33c to $16.65, while Woodside shares were up $1.04c to $45.80.
Corporate Express a takeover target
Corporate Express said that US-based Staples would acquire all shares in the company at $5.60. The decision to accept the offer was arrived at by the independent director’s who said the offer valued the company at around $1 billion.
At the end of the day, the All Ords had added 57.8 to 4,866.9, while the ASX/200 gained 56.0 to 4,853.2. Over 2.6 billion shares worth around $5.5 billion had changed hands.
Broad gains were seen across most sectors, including the Materials and Resources sector, which put on 1.6%.
Mining heavyweights BHP Billiton and Rio Tinto added 1.3% and 1.6% to $43.30 and $76.70 respectively as base metal prices rose in London overnight.
In a quiet news day, the gold miners rose similar amounts. Lihir added 5c to $3.11, while Newcrest put on 61c to $34.13.
Steelmaker Onesteel and aluminium producer Alumina climbed 3.5% and 3.9% to $3.82 and $2.90.
Elsewhere homebuilders were strong on the back of local data and as the US market appears to be stabilising. James Hardie advanced 26c, or 3.5% to $7.67, while Boral rose 13c, or 2.4% to $5.52.
According to the the Australian Bureau of Statistics dwelling commencements climbed by a seasonally-adjusted 15.1% in the December quarter. Work was started on just over 40,000 homes in the period, the largest increase in 18 months.
The Banks and Financials sector gained 0.9%.
Westpac and ANZ added 1.6% and 1.9% to $27.34 and $24.61 to be the best of the big four banks.
Macquarie was 73c higher to $49.37, while insurer AMP led that sub-sector higher with a 12c gain to $6.27.
Platinum Asset Management jumped 5.5% to $5.55.
Westfield shares were 0.3% weaker to $11.84 as the Property Trusts dragged to finish 0.7% in the red.
Mirvac shed 2.5c, or 1.7% to $1.475.
Energy stocks followed their international peers higher with a 2.3% rise. Uranium specialists were standouts with Rio Tinto controlled ERA rallying 5.6% and Paladin climbing 3.9%.
Extract Resources was 5.2% stronger.
Meanwhile, Woodside rose $1.04 to $45.80 and Origin added 33c to 16.65. The latter said it has increased its interest in the Otway Gas Project to 67% following completion of the acquisition of an additional 36% interest from Woodside.
Oil Search gained 22c, or 3.9% to $5.88, while WorleyParsons put on $1.01, or 4.0% to $26.20.
The Consumer Discretionary stocks rose 1.4%. Billabong surged 44c to $10.74 following yesterday’s sell-off after going ex-dividend.
David Jones shares were up 6c to $5.13 despite the department store posting a record first half profit of $100.5 million and saying full year profit growth was expected to be between 5% and 10%.
Among the gamers, Crown put on 27c, or 3.4% to $8.32.
Consumer Staples was flat as Wesfarmers retreated 45c, or 1.4% to $31.10, while Woolworths gained 44c, or 1.6% to $28.72.
The major mover, however, was AWB which tumbled 12c, or 11.4% to 93.5c after downgrading its profit guidance.
The Industrials sector was 1.6% stronger as most stocks traded above the gain line.
Toll and Asciano were 2.4% and 2.9% higher, while Leighton climbed $1.48, or 3.9% to $39.85.
Waste services company, Transpacific put on 3.5c, or 2.7% to $1.33, while Bradken also rallied, up 37c or 5% to $7.70.
Telstra continued its recovery from all-time lows of $2.88 earlier this month, adding 2c, or 0.6% to $3.13, while the broader Telecommunications sector put on 0.5%.
Around the region, the Nikkei 225 rose 91.4 to 10,813.1, while the NZSE50 fell 6.8 to 3,201.0. The Straits Times Index gained 18.1 to 2,914.5. The Hang Seng climbed 330.7 to 21,353.6.
Spot gold was trading at US$1,127.70 per ounce, while the Aussie was buying US$0.9186.
David Jones posts record profit
David Jones reported a post-tax profit for the six months to 31 January 2009 of $100.5m, up 10.2% from the previous corresponding figure. Just one year out from the GFC the department store said the result was the highest first half profit since the company listed on the ASX 15 years ago.
At the close, David Jones shares were up 6c to $5.13.
AWB downgrades full year guidance
AWB downgraded its forecast profit before tax and significant items for the full year ending 30 September 2010 from previous guidance of $115m to $140m to a range of $85m to $110m. The agribusiness attributed the decrease to the expected reduction in annualised profit before tax of $7 million to $10 million due to the sale of the Landmark Financial Services loan and deposit books.
At the end of the day, AWB shares were down 12c to 93.5c.
Macmahon awarded $190m contract
Macmahon Holdings announced last night that it has been awarded a three-year contract valued at over $190m by Syntech Resources to develop and operate the new Cameby Downs coal mine in the Surat Basin in Queensland. The company said the contract would see it undertake all mining activities for Stage 1 of the project, including planning, mine development, waste stripping, coal mining, coal preparation and train loading.
At the close, Macmahon shares were up 1.5c to 75.5c.
Origin's interest in Otway Gas Project now 67%
Origin Energy increased its interest in the Otway Gas Project to 67% following completion of the acquisition of an additional 36% interest from Woodside Energy. The company said the purchase price was $520 million, which remains subject to a further adjustment on the settlement of final joint venture accounts up to the completion date.
By the close of trade, Origin shares were up 33c to $16.65, while Woodside shares were up $1.04c to $45.80.
Corporate Express a takeover target
Corporate Express said that US-based Staples would acquire all shares in the company at $5.60. The decision to accept the offer was arrived at by the independent director’s who said the offer valued the company at around $1 billion.
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