Local shares finished in the black Wednesday, however investor enthusiasm tapered in afternoon trade following a hectic start to trading driven by momentum from Wall Street. Heavyweight mining, energy and property trusts buoyed the domestic market.
The All Ords was up 13.7 to 3,795.3 while the ASX/200 rose 12.7 to 3,801.1. Over 2 billion shares, or $4.2 billion changed hands.
Materials and Resources added 1.1%, with BHP Billiton leading from the front. The major miner’s shares gained 1%.
BHP CEO Marius Kloppers said he didn’t expect a sharp rebound in commodities demand and saw a slow and protracted recovery in the global economy.
Rio Tinto edged 1.7% lower.
Meanwhile, Newcrest Mining CEO Ian Smith suggested the global economy might have turned a corner. He said the medium- term outlook for emerging nations was solid.
His comments helped the company to shrug off a dip in gold prices to trade 0.8% higher. However, Lihir Gold lost 0.9%.
Elsewhere in the sector, chemicals companies Orica, Incitec Pivot and Nufarm were up 2%, 8.1% and 3.2% respectively.
OZ Minerals surged 6.7%, while Fortescue was flat.
A rise in crude futures saw Woodside Petroleum, Santos and Oil Search add 0.3%, 1.5% and 2.1% respectively.
The broader Energy sector was up 0.9%.
Oil refiner Caltex Australia said it would purchase 302 service stations from Exxon Mobil Corp in Australia for $300 million. Caltex shares were up 8.3%.
Banks and Financials lost 0.3%. The major banks were mixed with NAB adding 0.5% and CBA edging 0.9% lower, while Westpac slid 1.8%.
ANZ was halted after announcing plans to raise $2.5 billion by selling shares to bolster capital as it bids for Royal Bank of Scotland Asian assets.
Among insurers, Suncorp slid 2.6% after announcing $136 million in impairment losses for the three months to 31 March 2009.
Macquarie shed 1%.
Property Trusts enjoyed broad based gains with the sector rallying 2.7%. Sector heavyweight Westfield group was up 2.8% after saying it had priced US$700 million in senior notes to pay down loans.
Meanwhile, Goodman Group jumped 11.4% despite being placed on CreditWatch by ratings agency S&P.
Stockland and Mirvac were up 5.3% and 6.5% respectively.
Industrials were also broadly higher with the sector adding 1.5%. Brambles was flat, while Leighton Holdings and Qantas added 2.8% and 2.3% respectively. Macquarie Airports rallied 3.2%.
Fisher & Paykel Appliances shares soared 55.8%, despite the New Zealand based company posting a $75 million loss.
Consumer Discretionary stocks gained 1%. Tabcorp rose 2.1%, News Corp put on 4.4% and David Jones gained 2%.
Billabong shed 4%, while JB Hi-Fi dipped 1.9%.
Among Consumer Staples, Wesfarmers was flat, while Woolworths shed 1.3%. The sector was down 0.1%.
Healthcare was 0.7% higher with a modest gain of 0.8% by CSL. Ramsay Health Care added 3.4%, while Cochlear drifted 0.2% higher.
Around the region, the Nikkei 225 was up 107.7 to 9,418.6, the Straits Times Index picked up 53.0 to 2,291.8 and the NZSE50 added 35.7 to 2,769.8. The Hang Seng had risen 799.9 to 17,791.5.
Spot gold was trading at US$948.00 per ounce and the Aussie was buying US$ 0.7859.
HGL profits hit by sliding dollar
HGL reported a total profit of $3.7m for the six months to 31 March 2009, up on a $2.9m loss for the previous corresponding period. The company’s core profit for the same period was down from $5m last year to $2.2m, which was within the guidance provided at its AGM.
At the bell, HGL shares were flat at 80c.
GPT sells WA shopping centre for $100m
GPT Group said that it had sold its Floreat Forum shopping centre in Perth for $100 million. The company said it had sold the centre to Australasian Property Investments.
At the finish, GPT shares were down 1.5c to 50c.
ANZ to raise $2.5bn
ANZ Bank Group launched a fully underwritten institutional share placement to raise $2.5bn. The bank said funds would allow it to pursue strategic and organic growth opportunities and to strengthen its capital position.
At the close, ANZ shares were halted at $15.57.
Programmed posts $28 million profit
Programmed Maintenance Services posted a post-tax profit of $28m for the year ended 31 March 2009, down 1.2% from the previous corresponding period. The staffing and maintenance services company noted that this comparison directly between the years was not realistic as there had been both acquisitions and disposals of businesses by PRG over this time.
At the bell, Programmed shares were up 20c to $2.45.
Goodman debt placed on CreditWatch negative
S&P placed its long-term 'BBB' corporate credit and debt ratings on Goodman Group on CreditWatch with negative implications. Despite the announcement, GMG securities rocketed as much as 11.4% this morning.
At the finish, Goodman Group shares were up 2.5c to 24.5c.
Suncorp adds $136m to impairment losses
Suncorp-Metway reported impairment losses for the three months to 31 March 2009 was $136m. The company said its impaired assets increased to $1,241m from $986m at 31 December 2008.
At the close, Suncorp shares were down 16c to $5.95.
Ausenco awarded US$76m contract
Ausenco Limited’s minerals business has been awarded the EPCM contract for the Gosowong gold extension project in Indonesia. AAX said the value of the capital works under Ausenco management was around US$76m.
At the bell, Ausenco shares were up 28c to $3.70.
Iluka agrees to sell Consolidated Rutile stake
Iluka Resources said it had formally accepted Unimin Australia Limited’s offer for its stake in Consolidated Rutile. This holding is comprised of 187 million shares in CRL.
At the finish, Iluka shares were up 8c to $3.26.
Emeco cuts profit guidance
Emeco said it was expecting NPAT for FY09 to be in the range of $56m to $60m, down from a previous guidance of $65m to $72m. The mining service provider said the profit drop was a result of continued volatility in the mining market and a slower than expected recovery in utilisation.
At the close, Emeco shares were down 2.5c to 43.5c.
Caltex to acquire 302 service stations
Caltex Australia has agreed to acquire 302 Mobil service station sites for $300m. The company said the acquisition was a good strategic fit that would enable it to grow the business consistent with a long-term strategy of being a marketing-led business.
At the end of the day, Caltex shares were up 88c to $11.48.
CHC announces capital raising and strategic investment
Charter Hall Group has announced a $73m listed equity raising. The group said Gandel Group would invest up to $37m in CHC as part of this raising.
At the bell, CHC shares were halted at 37.5c.
Westfield prices US$700m debt issue
Westfield Group said it had priced a US$700m debt issue into the US market. The shopping centre manager said the money raised would be used to repay debt under the Group’s revolving credit facilities.
At the close, Westfield shares were up 29c to $10.61.
Norfolk EBIT in line with guidance
Norfolk Group reported NPAT from continuing operations for the period to March 31 2009 at $15 million, or 23% below the prior corresponding period. However, the building and engineering services company said it was a solid result given the challenging economic environment.
At the finish, Norfolk shares were down 1c to 41c.
Fisher & Paykel Appliances posts NZ$95 million loss
Fisher & Paykel Appliances posted a loss of NZ$95.25m ($75m) for the year to 31 March. At the same time, the New Zealand based company said it would make a fully underwritten equity raising to raise up to NZ$189m.
At the end of the day, FPA shares were up 29c to 81c.
