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The majority of Australian shares followed their global peers higher Wednesday morning as market heavyweights BHP and CBA released their half-year financial results. Resource stocks led gains, while financials struggled.

Overnight, Wall Street recovered some of the ground lost recently on the hope of a financial rescue for Greece.

In economic news, according to the Westpac-Melbourne Institute index consumer sentiment dropped 2.6% from 120.1 points in January to 117 in February. The fall has been largely attributed to consumers expecting future interest rate hikes.

At noon, the All Ords was up 45.8 to 4,566.5, while the ASX/200 rose 42.2 to 4,547.3. About 1 billion shares worth around $2 billion had changed hands.

Miners rallied after metals prices on the London Metals Exchange rose between 1.6% and 4.1% overnight. Copper was up 2.2%.

BHP Billiton gained 61c, or 1.5% to $40.46 after releasing its first half result this morning. The company gave a cautious outlook following a drop in earnings in the last six-month period that nonetheless beat estimates.

The Materials and Resources sector gained 2.1%.

Rio Tinto climbed $2.41, or 3.6% to $69.40, while Fortescue rallied 13c, or 2.8% to $4.74.

Gold miner Newcrest tracked the price of the precious metal higher to be up 1.9% to $32.05

OZ Minerals, Bluescope and Alumina were between 3.5% and 5.1% in the black.

Boral jumped 5.1% to $5.76 despite weak US conditions resulting in the building materials company reporting a 9% drop in first half profit.

The Energy sector added 1.4% by midday after crude futures rose 2.5% in New York.

Woodside put on 1.2% to $42.61. Yesterday, the nation’s second largest oil producer secured an agreement with its Browse project partners for the onshore processing of gas at James Price Point in the Pilbara.

Santos and Origin rose 17c and 15c to $13.19 and $16.13 respectively.

Coal and iron ore explorer Aquila surged 8.3% to $8.64, while Karoon Gas spiked 8.6% to $6.19.

Banks and Financials continued to lag, as they have done across the globe in recent times. The sector was flat.

CBA dipped 47c to $52.25 after cash profit for the first half jumped 54% to $2.9 billion. However, the nation’s largest bank announced just a 6% increase in its interim dividend.

NAB weakened 30c, or 1.2% to $24.82 as it set a March 20 deadline to finalise a deal with AXA SA to acquire AXA Asia-Pacific. AXA AP shares edged 1c higher to $6.36.

ANZ was the worst performing stock in the sector, trading down 1.9% to $20.18.

Macquarie Group was relatively flat at $47.24 after the investment bank's shares fell 6.1% yesterday on the back of a disappointing second half profit forecast.

Property Trusts outperformed the market, with sector 2.2% higher. Goodman Group and Mirvac rallied 4.3% and 4.2%, while Westfield added 15c, or 1.2% to $12.38.

3.6% and 3.3% gains from Leighton and Asciano to $37.30 and $1.74 led the Industrials sector 1.7% above the gain line.

Downer EDI climbed 39c, or 5% to $8.26.

Consumer Staples added 1.3% following consistent gains across the sector.

Wesfarmers rose 42c to $28.15 and Woolworths put on 20c to $25.51.

David Jones rallied 12c, or 2.5% to $4.86 after Credit Suisse its rating on the stock to ‘outperform’. 

JB Hi-Fi and Billabong gained 2.4% each to $19.78 and $10.55 as the Consumer Discretionary sector added 0.9%.

Telstra edged 2c higher to $3.37 ahead of the release of the telco giants’ half-year result tomorrow.

The Telecommunications sector advanced 0.6%.

Around the region, the Nikkei 225 rose 103.9 to 10,036.8, while the Straits Times Index added 7.1 to 2,752.2. Meanwhile, the NZSE50 gained 14.8 to 3,091.3.

Spot gold was trading at US$1,077.27 per ounce, and the Aussie was buying US$0.8784.   

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BHP earnings drop on weaker greenback, prices
BHP Billiton said lower commodity prices and a weak US dollar adversely impacted earnings for the six months to 31 December 2009 compared to the prior corresponding  period. The mining giant reported a 7% drop in net profit excluding exceptional items for the half year to US$5.7 billion on a 17.5% fall in revenue to US$24.6 billion. 

At noon, BHP shares were trading up 67c to $40.52.

CBA cash profit jumps 54% to $2.9b
Commonwealth Bank of Australia reported a cash profit of $2.9bn for the six months to 31 December. Looking to the second half of the year the bank said it predicts loan impairments had peaked, however its customers still faced economic uncertainty, which could affect the banks result.

At lunchtime, Commonwealth Bank shares were trading down 45c to $52.27.

Boral profit down 9% on weak US conditions
Boral said its post-tax profit for the six month to 31 December would come in at $68 million – including $20 million in lower interest costs - down 9% from the previous corresponding period. The company’s results continue to be held back by the poor economic conditions in the US and a slowdown in non-residential activity.

By midday, Boral shares were trading up 28c to $5.76.

Stockland returns to profit
Stockland reported a profit of $213.7 million for the first half of FY10, rebounding from a $726.9 million loss posted in the previous corresponding period. The group upgraded its full year EPS guidance from 28c to 29c per share and said it has entered the second half in the strongest shape it has been in for some time.

At midday, Stockland shares were trading up 9c to $3.99.

Suncorp flags 40% profit hike
Suncorp-Metway said it expected to report a post-tax profit of between $355 million and $375 million when it reports half-year results on 24 February.

At midday, Suncorp shares were 18c to $9.12 each.

AACo losses continue to mount
Australian Agricultural Company reported a loss for the full-year to 31 December 2009 of $53.7 million, down $15 million on the previous corresponding period. The result was at the lower end of the loss forecast when the company updated guidance on 22 January.

Half way through the day, AACo shares were down 3c to $1.27.

Industrea secures $18.8m order
Industrea announced the signing of a record $18.8 million order from Chinese miner Yangquan Coal Industry (Group) Co. for the delivery of eight AMT directional drilling and methane gas drainage systems. The Australian mining products and services provider said it is the largest sale ever won by its AMT and Wadam Industries units.

At lunch, Industrea shares were up 3c to 37.5c.

Computershare says growth likely to slow
Computershare anticipates earnings per share growth for FY10 of between 10% and 15% after first-half profit rose 29.8% to $169.9 million. The company said there was no certainty that some of the larger transactions behind the strong first half result would be matched in the second half and that over the past few years 1H has been stronger than 2H.

As at midday, Computershare shares were down 4c to $11.91.

SMS 1H profit increases 9.3%
SMS Management & Technology delivered a net profit after tax of $13.3 million for the six months ended 31 December 2009, up 9.3% on the previous corresponding period. The information and communications technology services company said revenues dropped 3.1% to $117.1 million, while EBITDA increased 7.6% to $17.7 million in the same period.

By noon, SMS shares were up 11c to $5.72.

Devine changes focus, profit slumps
Devine saw its profit slump 89.5% to $1.2 million for the six months to 31 December 2009. The result came despite a 53% surge in revenue to a tick over $300 million.

At lunchtime, Devine shares were up 0.5c to 41c.

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