Australian stocks gained today in a broad based rally, despite a negative lead from U.S. markets overnight. An improving outlook for the economy is supporting mining and banking stocks.
The major economic news of the day was that Australia’s unemployment rate held steady at 5.8% in July.
The S&P/ASX 200 Index closed 62 points higher at 4,326 while on the futures market, the SPI200’s up 74.
To company news around this afternoon, Alumina (ASX:AWC) shares jumped today as the company reported a better than expected loss of $15 million for the six months to June. The result was down from underlying earnings after tax of $152 million a year ago but it said there were early signs of recovery in some of its key markets. Shares finished the session 9.79% higher at $1.795.
Industrial services group Bradken (ASX:BKN) reported net profit for the 2009 financial year that rose 11 per cent to $64.3 million and said it expected 2010 financial year profit levels to be similar. Bradken said that second half trading conditions were affected by the economy but shares jumped 14.94% to $6.00 on the news.
Also making news today: Webjet (ASX:WEB) said its full year net profit grew 15 per cent to $7.7 million for the year to June 30. The online travel agent said that it expects growth again next year despite not expecting market conditions to improve until well into 2010.
Lion Nathan (ASX:LNN) said a report from an independent expert has said that Japanese brewer Kirin’s offer to acquire the 53 percent of the group it doesn't already own was fair and reasonable.
Taking a look at some of the stories covered in our earlier reports: Newscorp (ASX:NWS) shares gained despite it reporting a US$3.4 billion loss for the 2009 year. Rupert Murdoch said he believes the worst of the economic downturn may have ended.
Tabcorp Holdings (ASX:TAH) reported a better than expected full year result but said it expects challenging conditions to remain into 2010.
Now to the best and worst performers: the best performing sector at the close was the Real Estate Investment Trust index, up 21 points to 803; while the worst performing sectors was the Staples index; down 12 points to 6,970.
The best performing stock in the S&P/ ASX200 was Bradken as it reported upbeat results today. Shares in Boart Longyear and Minara Resources also closed higher.
The worst performing stock was Astro Japan Property Trust with shares falling 5 per cent to $0.38. Shares in Tabcorp and Equinox Minerals also closed lower.
In commodities, gold is trading at $964.05 U.S an ounce and light crude oil is down 37 cents at $71.60 U.S a barrel.
