The Aussie market closed higher Thursday on the back of strong gains among commodity and discretionary stocks. The banks were flat as news filtered out that their US peer, Bank of America, would repay US$45 billion in TARP payments to the US government.
In economic news, according to the Australian Bureau of Statistics retail trade rose a seasonally adjusted 0.3% in October to $19.75 billion. The increase was in line with forecasts after a 0.2% decrease in September.
Meanwhile, new motor vehicle sales climbed 19.9% in the 12 months to the end of November. The rise in the Federal Chamber of Automotive Industries’ data was attributed to businesses taking advantage of government tax incentives to buy light commercial and sports utility vehicles.
At the end of the day, the All Ords added 12.6 to 4,789.3, while the ASX/200 gained 12.2 to 4,774.6. About 2.4 billion shares worth around $5 billion had changed hands.
It was a mixed day for the big four banks, with Westpac adding 19c or 0.8% to $24.46 to be the best performing stock. The bank was forecast by some analysts to earn an extra $230 million due to its decision to increase interest rates by 45 basis points.
CBA shed 59c, or 1.1% to $54.11, while NAB dipped 12c to $28.68 as it matched the RBA by increasing interest rates by 25 basis points.
The Banks and Financials sector was flat.
Macquarie Group put on 99c to $49.09, while the insurers were mixed. Suncorp-Metway gained 30c to $9.18, while losing ground was AXA Asia Pacific, down 6c to $5.82.
The heavyweight miners matched the banks with BHP Billiton 1.3% higher at $42.47. Rio Tinto edged 3c lower to $73.51.
The broader Materials and Resources sector rose 0.9%.
Investors took a breather the gold miners today with Lihir and Newcrest Mining down just 5c and 7c to $3.68 and $39.19 respectively.
Nufarm bounced back from two days of heavy losses to close 34c higher to $10.85. At today’s AGM the company said it was on track to post an increase on last year’s profit, despite slow sales in the first half of the year.
Incitec Pivot rallied 20c, or 6.8% to $3.14.
Macarthur Coal added 43c to $9.77. Yesterday the company said it hoped to double coal production within 5 years.
The Energy sector was up 0.4%. Coal stocks outperformed, however, with Centennial Coal adding 13c to $3.54 and New Hope up 22c to 5.1% to $4.50.
Sector major Woodside lost 44c to $49.36.
Arrow Energy climbed 5.1% to $4.10 as it revealed current activities targeting expansion of the company’s 3P reserves are likely to lead to another upgrade in early 2010.
Consumer Discretionary stocks were 0.1% higher on the back of gains across the board.
Retailer Harvey Norman rose 5c to $4.47, while Pacific Brands added 2.5c, or 2% to $1.265.
Fairfax and Newscorp advanced 1.2% and 1.5% to $1.69 and $15.21 respectively.
Gamers Tabcorp and Crown advanced 1.2% and 1.4%.
Consumer Staples was off 0.4% on a flat day for the majors Woolworths and Wesfarmers.
Coca-Cola Amatil fell 1.8% to $10.97.
A 60c or 1.6% gain from Leighton to $37.45 was offset by a 17c or 2.6% fall from Brambles to $6.47, as the Industrials sector rose 0.1%.
Qantas outperformed among transport stocks, flying 4c higher at $2.79 in what has been a turbulent week for the stock.
Telstra, whose share price has risen 10% in the last month, was flat, with the broader Telecommunications sector also flat.
A $2.36, or 3.7% jump to $65.84 from Cochlear was more than offset by a 0.9% fall from heavyweight CSL to $31.48. The Healthcare sector weakened 0.1%.
Around the region, the Nikkei 225 added 315.6 to 9,924.5, while the Straits Times Index slid 2.1 to 2,794.2. Meanwhile, the NZSE50 put on 4.5 to 3,153.9. The Hang Seng put on 137.5 to 22,427.0.
Spot gold was trading at US$1,219.27 per ounce, and the Aussie was buying US$0.9285.
Nufarm FY10 profit to jump
Nufarm said at today’s AGM that it was expecting improved conditions this year to deliver an increased net profit above last year’s post-tax profit of around $80m. The company said this was despite a soft start to the year to date, which has seen sales down from the previous corresponding period.
At the end of the day,
Nufarm shares were up 34c to
$10.85.
Retail sales up 0.3%
According to the Australian Bureau of Statistics retail trade rose a seasonally adjusted 0.3% in October to $19.75 billion. The increase was in line with forecasts after a 0.2% decrease in September.
