The local share market has rallied this afternoon to close stronger with gains led by the miners on news that the Federal Government may look at modifying its controversial mining profits tax. The news overshadowed mounting concerns for the debt situation in Europe.
The S&P/ASX 200 Index finished the day 72 points higher at 4,379. While on the futures market, the SPI200’s up 81.
In economic news: The ABS has released data showing a 0.2% fall in private capital spending in the first quarter. A Reuters poll showed that market forecasts were for a rise of 1.4%.
To company news around this afternoon: Engineering and project management services company Ausenco Ltd (ASX:AAX) says it expects to report a net loss of between $9 and $13 million for the first half. This compares to a profit of $12.2 million for the six months to June last year. The company says it also expects to report first half revenue of between $200 and $230 million, down from $241 million for the same period a year ago. Ausenco says it is waiting decisions on some of the best prospects in its history with anticipated award decisions to occur over the next four to six months on project development tenders totalling US$10.9 billion. The company also says it has secured a new global banking facility for $155.2 million with ANZ and HSBC, which it says will provide the company with funding certainty and stability to support future growth. Shares in Ausenco closed 18.21% lower at $2.47.
Funds manager Perpetual Ltd (ASX:PPT) says it expects to report net profit after tax of between $85 and $95 million for fiscal 2010. This is more than double its fiscal 2009 result of $37.75 million which dropped 71% from the result in the year before that. The company says it also expects its second half underlying profit to be broadly in line with its first half results. Perpetual says it will continue to pay dividends of between 80% and 100% of its net profit after tax. Shares in Perpetual closed 1.17% higher at $30.18.
Also making news: Budget airline Virgin Blue Holdings Ltd (ASX:VBA) says total passenger numbers increased 3% in April, up 1.2% for the year to date.
Wilson HTM Investment Group (ASX:WIG) has warned that falls in the Australian stock market have reduced its funds under management and as a result the company expects to post a loss for fiscal 2010.
Conglomerate Wesfarmers Ltd (ASX:WES) says it is making good progress in phase one of its turnaround plan for supermarket chain Coles which it acquired in 2007.
And shopping centre owner Westfield Group (ASX:WDC) says it is starting to see more positive signs emerging in the markets in which it operates with its first quarter of operations this year confirming this better outlook.
In the best and worst performers: The best performing sector at close was the Materials index, up 398 points at 11,596. The worst performing sector was the Utilities index; losing 13 points to close at 3,998.
The best performing stock in the S&P/ ASX200 was Panoramic Resources, shares rose 14.24% to $1.965, while shares in Mincor Resources and PaperlinX also closed higher.
The worst performing stock in the S&P/ASX200 today was Ausenco, price as mentioned before. Shares in Tower Australia Group and OM Holdings also closed weaker today.
In commodities, gold is trading at $1,215.95 U.S an ounce, and light crude is up $0.67 to $72.18 U.S a barrel.
