A rally among resource stocks has helped the Australian share market finish stronger, led by gains in the miners like BHP Billiton after it announced settlements on short-term iron ore contracts.
The S&P/ASX 200 Index closed 20 points higher at 4,917, while on the futures market, the SPI200 is up 2 points.
To company news around this afternoon: AWB Ltd (ASX:AWB) and the US based company Gavilon LLC have signed a non-binding memorandum of understanding regarding the sale of AWB Geneva and the formation of a joint venture of AWB’s Australian commodity management business. Managing Director Gordon Davis says the consideration for the transaction will be formulated on the basis of book value plus a premium and is expected to release significant capital for the rural services provider. Mr Davis says the proposed transaction aligns with the company’s strategy to create a simpler, lower risk regional agribusiness and enhances the competitiveness of AWB’s commodities management activity. The transaction should be completed by June and the price will be disclosed upon the final signing of the deal. Shares in AWB closed 6.15% higher at $0.95.
Ten Network Holdings Ltd (ASX:TEN) is expected to post a profit for the first half of fiscal 2010, reversing a loss from the same period a year before, thanks to an improving advertising market. According to AAP, analysts at Goldman Sachs JBWere estimate the media group will record a profit of $60.7 million for the six months to February 28, 2010, when it releases its results tomorrow. It would mark a turnaround from the loss of $79.7 million the network posted in the first half of the 2009 financial year, which included $138.4 million in writedowns related to its outdoor advertising assets. The company lifted its share of television advertising revenue to just over 30% in the six months to December 2009, from 28.33% in the first half of 2009. CEO Grant Blackley says the network will unveil a third digital channel later this year, having launched its all-sport offering ONE a year ago. Shares in Ten Network closed 0.27% higher at $1.855.
Also making news: Argo Investments Ltd (ASX:ARG) has appointed Jason Beddow as its third CEO in the company’s 64-year history. Mr Beddow will succeed long-term chief Robert Patterson from tomorrow.
APN News & Media Ltd (ASX:APN) says business conditions in early 2010 are starting to return to levels seen before the global financial crisis and the company is poised to better its 2009 performance.
Rio Tinto Ltd (ASX:RIO) executive Stern Hu has been sentenced to 10 years behind bars after a Shanghai court found him guilty of taking bribes and stealing trade secrets. Three other colleagues of Mr Hu were handed jail sentences of between seven and 14 years.
And BHP Billiton Ltd (ASX:BHP) says it has reached agreements with a significant number of customers to sell most of its iron ore on shorter term contracts, signalling the possible demise of traditional annual fixed-price contracts.
In the best and worst performers: The best performing sector at close was the Materials index, up 203 points at 12,968. The worst performing sector was the Telco Services index; closing 13 points lower at 1,034.
The best performing stock in the S&P/ ASX200 was Gindalbie Metals, shares rose 7.27% to $1.18. Shares in Boart Longyear and AWB also closed higher today.
The worst performing stock was Nufarm, shares fell 6.45% to $8.12, while shares in Energy World Corp and Ansell also closed lower today.
In commodities, gold is trading at $1,110.10 U.S an ounce and light crude is up $0.12 to $82.29 U.S a barrel.
