The Australian share market closed in positive territory today led higher by gains in the miners on strong economic data out of the US, with some positive earnings outlooks from media giant News Corp and Insurance Australia Group also helping to lift the market.
The S&P/ASX 200 Index finished 43 points higher at 4,648 while on the futures market, the SPI200’s up 35.
In the latest economic news: The Australian Federal Chamber of Automotive Industries says vehicle sales fell 15.6% in January compared to a record December.
To company news around this afternoon: Building products and sugar business CSR Ltd (ASX:CSR) proposed demerger of its sugar and renewable energy business has been stopped in its tracks by the Federal Court because of the potential impact on asbestos compensation. Judge Margaret Stone told CSR that the potential disadvantage to those having asbestos related claims is such that the demerger is inconsistent with public policy and commercial morality. She said after the demerger CSR would be less likely to be able to meet its future asbestos liabilities. CSR rejected a bid by China’s Bright Food Group for its sugar and renewable energy business last month. CSR shares closed 0.54% higher at $1.845.
Property investor Mirvac Group (ASX:MGR) says the value of its investment division assets fell 3% in the six months to December 31, 2009. Managing Director Nick Collishaw says the revaluations are in line with the company’s expectations and peer results and are further evidence that the devaluation cycle for Australian investment grade assets is close to, or has bottomed. Mirvac says its investment properties under construction are now to be carried at fair value, having previously been carried at cost, which has resulted in a reduction in carrying value of $86.3 million. Mirvac Group shares closed 4.45% stronger at $1.525.
Also making news: Oil company Stuart Petroleum Ltd (ASX:STU) says it expects to return to profitability in the first half of fiscal 2010 after writing of the expense of an unsuccessful well.
Gold miner Avoca Resources Ltd (ASX:AVO) is a step closer to taking over fellow gold producer Dioro Exploration NL (ASX:DIO) after Dioro’s directors recommended that shareholders accept Avoca’s bid in the absence of a superior offer.
Global media giant News Corporation (ASX:NWS) has reported a profit of US$254 million for the three months to December 31, 2009 compared with a loss of $6.4 billion in the same quarter a year ago.
And Insurance Australia Group Ltd (ASX:IAG) says it expects to achieve a full year insurance margin in the range of 11.5% to 13% up from previous guidance of between 9-11%.
In the best and worst performers: The best performing sector at close was the Materials index, which was up 278 points at 12,175. At the other end the worst performing sector at close was the Health Care index; which fell 34 points at 8,245.
The best performing stock in the S&P/ ASX200 was Fortescue Metals Group shares gained 6.18% to $4.98. Shares in Suncorp-Metway and Aquila Resources also improved.
The worst performing stock was Roc Oil Company shares plummeted 30.71% to $0.44. The company today downgraded its 2P reserves at its Basker-Manta-Gummy project. Macquarie Atlas and Beach Energy shares also closed lower today.
In commodities, gold is trading at $1,114.28 U.S an ounce and light crude is down 16 cents at $77.07 U.S a barrel.
