Market Wrap - 10/02/10, 5.35pm EST

Market Reports

The Australian share market has lost steam this afternoon, giving up earlier gains to close slightly higher today.

Declines in the major banks, such as NAB and Westpac, dragged on the market following in a drop in housing finance. Debt problems in Europe continue to spook the market.

The S&P/ASX 200 Index finished 8 points higher at 4,513 while on the futures market, the SPI200 is up 7 points.

To company news around this afternoon: Mining products and services provider Industrea Ltd (ASX:IDL) has secured a record $18.8 million gas drainage order from Chinese miner Yangquan Coal Industry (Group) Co. The deal involves the delivery of eight Advanced Mining Technologies (AMT) directional drilling and methane gas drainage systems. Managing director and CEO Robin Levison says the sale is the largest ever won by Industrea’s AMT and Wadam Industries units, with new China product contracts running at about $10 million a month since the start of fiscal 2010. Shares in Industrea Ltd closed 4.35% higher at $0.36.

Australian Agricultural Company Ltd (ASX:AAC) has blamed drought and weak cattle prices for posting a loss of $53.7 million for calendar 2009. The poor result, down $15 million on its 2008 loss, reflects a 33% slump in revenue to $156 million. CEO David Farley says the company, which operates grazing and farming properties, is undergoing a strategic review that he hopes will help it perform better in future. Shares in Australian Agricultural Company Ltd closed 2.69% lower at $1.265.

Also making news: Life insurer Tower Australia Group Ltd (ASX:TAL) has told shareholders it is investigating merger and acquisition opportunities, but will only buy assets if they deliver valuable returns.

And home builder Devine Ltd (ASX:DVN) has reported a dive in profit of 89.5% to $1.221 million for the first half of fiscal 2010. However, the company expects its full year result to be 25% higher than last year.

Global miner BHP Billiton (ASX:BHP) has posted a better than expected first-half profit of US $5.7 billion. And Commonwealth Bank of Australia (ASX:CBA) has reported a 36% surge in profit to $2.9 billion for the first half of fiscal 2010, on the back of strong income and lending growth.

In the best and worst performers: The best performing sector at close was the Utilities index, which was up 54 points at 4,129. At the other end the worst performing sector at close was the Financials excluding the Real Estate Investment Trust index; which fell 46 points at 5,149.

The best performing stock in the S&P/ ASX200 was Karoon Gas Australia, shares gained 12.11% to $6.39. Shares in SMS Management & Technology Ltd and St Barbara also improved.

The worst performing stock was Lynas Corp, shares fell 5.71% to 49.5 cents. Fleetwood Corp and Virgin Blue shares also closed lower today.

In commodities, gold is trading at $1,077.20 U.S an ounce and light crude is down 48 cents at $73.27 U.S a barrel.


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