The local share market has closed the session higher today boosted by gains in the top banks like ANZ and Westpac and resource companies such as mining giants BHP and Rio Tinto following some upbeat outlooks from companies reporting earnings today and fresh optimism for the economy.
The S&P/ASX 200 Index finished 82 points higher at 4,718 while on the futures market, the SPI200 is up 93 points.
In economic news: According to a report released by the Housing Industry Association and Commonwealth Bank of Australia, affordability sank 18.4% in the December quarter, down 22.3% from a year ago.
To company news around this afternoon: Forestry company Gunns Ltd (ASX:GNS) has reported a big fall in first half profit and says it expects conditions to remain weak for the rest of the year. Net profit after tax for the six months to December 31, 2009 came to $0.4 million down from $33.6 million for the first half of fiscal 2009. Revenue dropped 24% to $325.9 million for the period, the result hurt by a strong Aussie dollar and competitiveness in the Asian market. Looking ahead the company says market conditions for the wood fibre business are expected to remain weak although a gradual improvement is expected through the course of the 2010 calendar year. Gunns says it undertook a strategic review to reshape the company, which will include the creation of a separate investment vehicle to facilitate direct investment in its plantation forestry assets. Gunns shares closed 22.16% weaker at $0.685.
Australian Worldwide Exploration Ltd (ASX:AWE) has posted net profit of $17.3 million for the six months to December 31, 2009 down 82% from the same period a year ago. The company however chose to focus on recent exploration results, confirming a substantial gas and condensate discovery at two of its wells in the Bass Basin north of Tasmania. The company says its interim results were derived from oil and gas production of 3.3 million barrels of oil equivalent and sales revenue of $190 million down from $392 million for the same period a year ago. Shares in AWE closed 0.38% higher at $2.66.
Also making news: Property Group GPT Group (ASX:GPT) has appointed Dr Eileen Doyle as a director with effect from March 1, 2010.
Financial services company to small businesses and consumers ThinkSmart Ltd (ASX:TSM) has reported a record cash net profit after tax of $7.5 million for the 12 months to December 31, 2009 and declared a final dividend of 2 cents a share.
Fairfax Media Ltd (ASX:FXJ) has announced a first half profit of $148.81 million, benefitting from a modest recovery in advertising markets. The result compares to a loss of $365.27 million for the same period a year before. Fairfax also announced an on-line venture with APN News and Media Ltd (ASX:APN).
And Seven Network Ltd (ASX:SEV) has reported a jump in first half profit to $509 million as it announces a merger with heavy machinery group Westrac Holdings.
In the best and worst performers: Majority of sectors closed in positive territory today however the sector at close with the biggest gain was the Materials index, up 303 points at 12, 269. The only sector to close in the red was the Telco Services index; which fell 48 points at 1,035.
The best performing stock in the S&P/ ASX200 was Oz Minerals, shares gained 8.16% to $1.06. Shares in Energy World Corp and Equinox Minerals also improved.
The worst performing stock was Gunns, shares fell 22.1% to $0.685. Seven Network and Telstra shares also closed lower today.
In commodities, gold is trading at $1,124.90 U.S an ounce and light crude is up 45 cents at $80.26 U.S a barrel.
