The local share market has closed the session higher today lifted by gains in the major banks like Westpac, and resource stocks such as mining giant Rio Tinto on a rise in commodity prices. Westpac today began operating as a single authorised deposit-taking institution, and Rio Tinto agreed to acquire 15 million shares in Ivanhoe Mines increasing its stake in the company to 22.4%.
The S&P/ASX 200 Index finished 49 points higher at 4,687 while on the futures market, the SPI200 is up 86 points.
In economic news: ABS data released today shows that company gross operating profits rose 2.2% to around $55 billion in the fourth quarter of 2009 compared to the previous quarter. Economists expected a rise of 2.3%. The ABS also reports that Australia’s account deficit in the fourth quarter was $17.46 billion. A Reuters poll showed market forecasts were for a deficit of around $17.1 billion. And business inventories rose 0.2% in the fourth quarter.
In other economic news, the Housing Industry Association reports that new home sales rose 9.5% in January from December.
To company news around this afternoon: Lend Lease Group (ASX:LLC) has raised $434 million from institutional investors who took up 87% of their entitlements. The funds were raised via the institutional component of Lend Lease’s entitlement offer announced on February 25. The company is hoping to raise $806 million to help accelerate the development of several major projects. Lend Lease plans to raise a further $305 million from retail investors at $7.70 a share. Shares in Lend Lease closed 0.67% lower at $9.28.
And healthcare company Sigma Pharmaceuticals Ltd (ASX:SIP) has asked the ASX to suspend its shares until further notice after going into a trading halt last Thursday, as the company reworks its full year financial accounts. The move has prompted fear among some analysts that the company may issue an earnings downgrade. In a statement today Sigma says it expects to make an announcement to the market in relation to its revised earnings guidance for the year before the expected release date of its final results, which are expected in the next few of weeks. For the six months to July 31, Sigma reported a 4.9% rise in net profit to $32.2 million. Shares in Sigma Pharmaceuticals last traded at $0.90.
Also making news: Uranium exploration company Extract Resources Ltd (ASX:EXT) has appointed Jonathan Leslie as CEO. Mr Leslie was on the board of Rio Tinto PLC for nine years and CEO of two of Rio’s major product groups.
Electronic appliance retailer Clive Peeters Ltd (ASX:CPR) has reported profit of $424,000 for the six months to December 2009 despite posting revenue of $252 million. The company says the result was impacted by misappropriation of funds following news last year that one of its employees had embezzled over $19 million.
Rio Tinto Ltd (ASX:RIO) has agreed to acquire 15 million shares in Ivanhoe Mines for $259.34 million, increasing its stake to 22.4%.
And Mining giant BHP Billiton (ASX:BHP) has started production early at the Pyrenees oil and gas project offshore Western Australia. First production was expected to have started by the end of the first half of calendar year 2010.
In the best and worst performers: Majority of sectors closed in positive territory today, however the sector with the biggest gain was the Consumer Staples index, up 227 points at 7,823. While the only sector to close in the red was the Telco Services index; which fell 11 points to 1,011.
The best performing stock in the S&P/ ASX200 was Lynas Corp, shares gained 8.42% to $0.515. Shares in Australian Agricultural Company and Toll Holdings also improved.
The worst performing stock was Carnarvon Petroleum, shares fell 6.86% to $0.475. Shares in Charter Hall Group and Telecom of New Zealand also closed lower today.
In commodities, gold is trading at $1,118.35 U.S an ounce and light crude is up 55 cents at $80.21 U.S a barrel.
