Australian shares hit their peak at around 11am before drifting lower through the afternoon, though still finishing the day 0.2% in the black. The heavyweight miners were flat as were the banks with both groups unable to maintain early gains.
 
In economic news, the latest Westpac-Melbourne Institute survey revealed the economy was rebounding faster than any time since the 1970’s. The release of the leading index of economic indicators showed growth of 5.8% in September, up from 3.8% in August and above the longer-term trend of 3.1%.

Westpac, in looking at the results, said that it was now likely that there would be another rate rise before Christmas.

At the end of the day, the All Ords had gained 9.4 to 4,759.6, while the ASX/200 added 9.6 to 4,739.0. About 2.7 billion shares worth around $5.2 billion had changed hands. 

Materials and Resources rose just 0.1%.

Rio Tinto gave up its recent rally to close 80c lower at $72.60.

Larger rival BHP Billiton put on 10c, or 0.2% to $40.60.

The proposed merger between BHP and Rio’s Pilbara iron ore assets has come under fire from European steel makers.

Gold miners continued to benefit from the price of the precious metal reaching record highs. Lihir added 1.4% to $3.52, while Newcrest gained 0.6% to $35.46.

Chemicals and explosives companies provided some strength, with Incitec Pivot and Orica advancing 3.3% and 3.4% to $2.85 and $25.52 respectively.

Macarthur Coal slumped 48c, or 4.7% to $9.80 after the company forecast a profit for the six months to 31 December 2009 to be in the range of $30 million to $38 million, well below the $107 million profit posted the previous corresponding period.

Energy stocks edged 0.5% lower. Strong demand for heating oil futures sent the price of crude higher.

Woodside gave up morning gains to finish down 8c at $49.52, while Oil Search put on 1c to $5.85.

Aquila surged 5.6% to $9.24. The iron ore and coal explorer was trading around $2.00 in early March this year.

Santos and Origin weakened 1.6% and 2% to $15 and $16.25 respectively.

Oilfield engineering firm WorleyParsons slumped 61c to $26.86.

Banks and Financials put on 0.6% due largely to a rally among insurers. QBE climbed 57c to $23.01, while IAG rose 9c to $4.01 on speculation the former is considering making a bid for the latter.

The big four banks all lost ground throughout the day with only ANZ, up 27c to $22.16 and NAB, up 11c, or 0.4% to $28.61, finishing above the gain line.

Macquarie Group gained just 0.2% to $48.82. The investment bank's shares have given up around 16% from their recent peak of $58.80 per share.

A broker upgrade saw GPT add 1.6% to 65c as the Property Trust sector advanced 1.4%.

Westfield rose 31c, or 2.5% to $12.53, adding more points to the ASX/200 than BHP.

Consumer Staples put on 0.4% in a steady morning for the sector.

Foster’s rallied 2.9% to $5.70, while Wesfarmers and Woolworths were both largely unchanged finishing at $29.39 and $28.42 respectively.

AWB shed 0.5c to $1.255 after announcing this morning a $250.8 million loss for the year ended 30 September 2009 after posting a $60.3 million profit a year earlier. The loss was attributed to impairments.

The Consumer Discretionary sector was flat, despite a 19c, or 2.4% gain to $8.24 from gamer Crown.

Seven Network added 9c to $6.66 and Ten Network dipped 3.5c to $1.54 as reports surfaced the two television broadcasters have negotiated advertising rate increases for next year with media agency groups.

APN New & Media climbed 3.4% to $2.45 and Sky Network dropped 3.3% to $3.82 to be the major movers.

A mixed day among Industrial stocks resulted in the sector edging 0.6% lower.

Leighton put on 15c to $37.14 and Brambles shed 16c to $6.77.

UGL was down 11c to $13.65 as the company announced it had been awarded a $108 million supply and maintenance contract for Xstrata Coal.

The Healthcare sector was 0.9% lower with sector heavyweight CSL losing 34c to $31.76.

Telstra gained 2c to $3.32, sending the Telecommunications sector up 0.6%.

Around the region, the Nikkei 225 shed 67.4 to 9,662.5, while the Straits Times Index weakened 13.5 to 2,751.4. Across the Tasman, the NZSE50 lost 3.1 to 3,128.4. The Hang Seng fell 160.2 to 22,754.0.

Spot gold was trading at US$1137.42 per ounce, and the Aussie was buying US$0.9286. 

---

AWB posts loss due to impairments
AWB reported a net loss after tax and significant items of $250.8 million for the year ended 30 September 2009, down on a $60.3 million profit reported a year earlier. The agribusiness said the result took into account two discontinuing businesses, significant goodwill impairment for Landmark Financial Services, a write down in Hi-Fert, and other significant items in relation to restructuring and legal costs.

At the end of the day, AWB shares were trading down 0.5c to $1.255.

Aussie economic recovery 'extraordinary'
The latest Westpac-Melbourne Institute survey revealed the economy was rebounding faster than any time since the 1970’s after the release of the leading index of economic indicators showed growth of 5.8% in September, up from 3.8% in August and above the longer-term trend of 3.1%.

UGL secures $108 million rail contract
UGL said it had been awarded a $108 million contract for the supply and maintenance of 10 railway locomotives for Xstrata Coal. The contract also includes the maintenance of 300 wagons for the next 10 years.

At the close, UGL shares were down 11c at $13.65.

Macarthur Coal profit to be $30m - $38m
Macarthur Coal said that its forecast profit for the six months to 31 December 2009 was likely to be in the range of $30 million to $38 million. In the previous corresponding period Macarthur Coal posted a profit nearly $107 million.

At the bell, Macarthur Coal shares were down 48c to $9.70.