The Australian share market finished .8 per cent higher, breaking four consecutive days of losses with positive earnings results encouraging investors, Woolworths $2 billion record profit boosting the Consumer Staples sector. The S&P/ASX 200 Index is up 36 points to finish at 4,356. And on the futures market, the SPI200 is up 40 points.
In economic news: The ABS reported new capital expenditure dropped 4 per cent in real terms in the June quarter, down from a revised 1 per cent in the prior quarter.
To company news around this afternoon: Virgin Blue Holdings Ltd (ASX:VBA) has delivered a turnaround annual net profit of $21 million, up from a loss of $160 million the year before. The airline has also announced a new partnership with Middle Eastern airline Etihad, signing a codeshare and interline agreement enabling its V Australia aircraft to fly direct between Australia and Abu Dhabi from next year. V Australia’s exit from Johannesburg and Phuket routes from next year and, the introduction of two Airbus A330-200 aircraft are further changes that form the second phase of its network review. Shares in Virgin Blue Holdings closed 12.5% up at $0.315.
Fortescue Metals Group Ltd (ASX:FMG) has recorded a 14 per cent increase in full year profit to US$581 million for the year to June 30. The iron ore miner posted record underlying EBITDA, rising 129 per cent to US$1.3 billion, and says total iron ore shipments increased 44 per cent to 40.1 million tonnes, and it’s Christmas Creek expansion is on track to deliver ore by 2011. CEO Andrew Forrest says the result marks a turnaround for Fortescue, delivering strong cashflow after years of project development. Shares in Fortescue Metals Group closed 3.69% up at $4.50.
Ten Network Holdings (ASX:TEN) has confirmed it will launch a new digital channel called Eleven early next year, and will form a joint venture with CBS Studios International to deliver the content.
Gambling and gaming company Tatts Group Ltd (ASX:TTS) has more than halved its net profit in fiscal 2010 to $119.4 million, accounting one-off restructuring costs and adjustments to the value of Talarius an Maxgaming software for the decline.
Insurance Australia Group Ltd (ASX:IAG) has reported an annual net profit of $91 million, halving its result from the $181 million reported last year, it says due to weather conditions and challenging market conditions for its UK businesses.
Shares in Woolworths Ltd (ASX:WOW) soared today, following news that the Australia’s largest supermarket chain has delivered a 10.1 per cent increase in net profit to $2.02 billion. An off-market share buyback to return $700 million to shareholders was also announced.
In the best and worst performers: Most sectors closed in the black today, the best performing sector was the Consumer Staples, with the index up 155 points at 7,776. The worst performing sector was the Utilities sector with the index down 59 points at 4,196.
The best performing stock in the S&P/ ASX200 was Virgin Blue Holdings shares as mentioned before. Shares in Cabcharge Australia and Eldorado CDI also closed higher. The worst performing stock was Cudeco, shares closed 16.32% lower at $2. Shares in Spark Infrastructure Group and Ten Network Holdings also closed weaker today.
In commodities, gold is trading at $1241 US an ounce.
Light crude is up $0.28 at $72.80 US a barrel.
