Australian shares have rallied today, inspired by a strong session on Wall Street overnight on hopes of a positive reporting season.
Local property and materials stocks improved – material on higher metal prices. Media companies were boosted as RBS Morgans upgraded its ratings on APN News & Media, Fairfax Media, West Australian Newspapers Holdings and Seek because of an improving outlook for advertising and job advertising.
The S&P/ASX 200 Index closed 53 points higher at 4,846 while on the futures market, the SPI200’s up 36.
To company news around this afternoon: Conglomerate Wesfarmers (ASX:WES) has reported that production increased at most of its coal mines for the year to September 30. Output of thermal steaming coal at the Premier mine in Western Australia improved 9.5 per cent and jumped 9.2 percent at the Curragh mine in Queensland while metallurgical coal production at Curragh declined 7.4 per cent. Wesfarmers shares finished 0.81% higher at $26.25 today.
Whitehaven Coal (ASX:WHC) has entered into an agreement to buy the Vickery Coal Project from Coal & Allied Industries (ASX:CAN) for $31.5 million. The purchase includes 1,150 hectares of land around Gunnedah NSW, the leases over the mines and water licenses. Whitehaven said that between 1991 and 1996, the Vickery Project produced around 6 million tonnes of thermal coal. Whitehaven Coal shares finished the day 0.5% lower at $3.99 today.
Also making news: Shares in oil and gas company Oil Search (ASX:OSH) declined after it raised $895 million in a share sale. The company said the share sale was instead of selling its 3 percent stake in its PNG liquefied natural gas project and that its decision to sell shares instead is good news.
Stockland (ASX:SGP) said today that it is on track to achieve its earnings guidance of 28 cents per share for the 2010 year despite reporting a $1.8 billion loss for the 2009 year to June after downward revaluations to its portfolio.
Taking a look at some of the stories covered in our earlier reports: Woolworths (ASX:WOW) has announced first quarter sales that improved 4.2 per cent on the previous year to $13.4 billion.
Challenger Financial Services Group (ASX:CGF) said its assets under administration and advice jumped 50% for the September quarter to $112.2 billion. Assets and mortgages under management increased 3.4 per cent for the quarter due to a 12 per cent rise in funds under management during the quarter.
In the best and worst performers: The best performing sector at close was the Real Estate Investment Trust index, up 21 points at 962. All the sectors finished higher but the worst performing was the Telecommunications index; which gained just 1 point to 1,085.
The best performing stock in the S&P/ ASX200 was Platinum Australia and shares rose 7.85 per cent to $1.03. Shares in St Barbara gained and Challenger Financial Services shares also gained as assets under management improved.
The worst performing stock was Oil Search with shares falling 7.26 per cent to $6.26 after the share sale raising. Shares in Pacific Brands declined as it defended its decision to cut over 1,200 jobs and said the criticism that chief executive, Sue Morphet, received was unwarranted. James Hardie shares also closed lower today.
In commodities, gold is trading at $1,066.70 U.S an ounce and light crude is up 14 cents at $79.75 U.S a barrel.
