The local share market has closed the session stronger, led by gains in energy stocks following bullish forecasts from Shell about liquefied natural gas potential in the Asia Pacific region.
The S&P/ASX 200 Index finished 56 points higher at 4,853, while on the futures market, the SPI200 is up 49.
In economic news: ABS data reveals new home starts rose by a seasonally adjusted 15.1% to more than 40,000 in the December quarter of 2009. The jump marks the biggest quarterly increase in dwelling commencements in eight years, and builds on an 11% rise in the previous three months.
To company news around this afternoon: Minerals Corporation Ltd (ASX:MSC) has signed a deal to form a joint venture with a steel mill in China to produce cement. The joint venture partners will establish a new subsidiary company in China to make Kaocem, which is the company’s trademarked kaolin-based low carbon cement. The kaolin processor says it has signed a preliminary memorandum of understanding with an unnamed party, which will provide a long term source of steel slag waste for making Kaocem. The company will visit China in the near future to formalise the deal. Minerals Corporation previously had an agreement with Descrete Australia Pty Ltd to produce the products locally, but it is now seeking compensation from Descrete for allegedly not meetings its obligations. Shares in Minerals Corporation closed 19.4% lower to $0.054.
Origin Energy Ltd (ASX:ORG) has completed a $520 million deal with Woodside Energy Ltd to increase its stake in the Otway Gas Project. Origin now holds a 67% interest in the project after acquiring an additional 36% interest from its joint venture partner, Woodside. The newly adjusted purchase price is subject to further changes upon settlement. Managing Director Grant King says the acquisition includes production licenses and offshore production facilities, as well as an onshore gas processing plant and adjacent exploration permits. Mr King says the increased interest will deliver additional earnings for the company from sales of natural gas, LPG and condensate extracted from the gas stream. Shares in Origin Energy are up 2.02% at $16.65.
Also making news: Hearing implant company Cochlear Ltd (ASX:COH) has named a replacement for Chairman Tommie Bergman, who is retiring at the end of this financial year. Cochlear director Rick Holliday-Smith will take over the reins on July 1 after five years on the company’s board.
BHP Billiton Ltd (ASX:BHP) says the closure of its Hay Point coal export terminal in Queensland is starting to affect production at some coal mines and rail operations. The port was closed on Thursday due to severe weather conditions.
David Jones Ltd (ASX:DJS) has booked a record 10.2% rise in first half earnings and reaffirmed profit growth guidance of between five and 10% for this year and next. The department store chain has reported a profit of $100.5 million for the 26 weeks to January 23, up from $91.2 million for the same period the year before.
And agribusiness group AWB Ltd (ASX:AWB) has downgraded its full year earnings guidance to between $85 and $110 million. The company had forecast profit before tax and significant items for the year ending September 30, 2010, of between $115 and $140 million.
In the best and worst performers: The best performing sector at close was the Energy index, up 360 points at 15,738. The worst performing sector was the Real Estate Investment Trust index; falling 6 points to 855.
The best performing stock in the S&P/ ASX200 was Linc Energy, shares rose 9.27% to $1.71. Shares in Cudeco and St Barbara also closed higher today.
The worst performing stock was AWB, shares fell 11.37% to $0.935. While shares in Abacus Property Group and Charter Hall Retail also closed lower today.
In commodities, gold is trading at $1,128.35 U.S an ounce and light crude is up $0.45 to $82.15 U.S a barrel.
