The Australian share market closed higher today, gaining 0.2 per cent, a slight recovery fuelled by gains in the miners and energy companies, but weighed down by the Consumer Staples sector. The flooding in Queensland continues to spook investors as more companies issue profit downgrades.
The S&P/ASX200 Index rose 10 points to close at 4,725. On the futures market, the SPI is 2 points weaker.
Economic news: The Federal Chamber of Automotive Industries has revealed annual sales of new vehicles soared 10.5 per cent in 2010, to the second highest amount on record. Over one million units were sold (1,035,574). Toyota claimed its eighth consecutive title for the most sold brand while Holden Commodore came in as the most popular model for the 15th year.
Company news: Riversdale Mining Ltd (ASX:RIV) says its joint venture with Tata Steel has scored the full rights to the planned $US1 billion Benga power plant project. The Mozambique focussed miner says taking full control of Benga will accelerate the development of the project and enable Riversdale attract further investment. Last month the Riversdale endorsed Rio Tinto Ltd's (ASX:RIO) $3.9 billion takeover bid of the coal miner. Shares in Riversdale Mining slipped 0.06 per cent to close at $17.02.
QR National (ASX:QRN) has cleared three of its four major rail systems in Queensland that have been impacted by flooding. The Australian reports that the recently-listed rail freight company will undertake major recovery works in coming days and weeks at the Blackwater rail system, which remains closed. QR National says it is working with its customers to understand what coal is available on stockpiles and when production is likely to start again. Shares in QR National closed 3.97 per cent down at $2.66.
Indophil Resources NL (ASX:IRN) and San Miguel Corporation have agreed to a one month extension on the exclusivity period for San Miguel to conduct due diligence on the Australian mining company.
Shares in China Yunnan Copper Australia Ltd (ASX:CYU) soared over 65 per cent today, following news the minerals explorer had made a significant rare earth discovery at its Mt Dorothy - Mary Kathleen joint venture with Goldsearch Ltd (ASX:GSE) in Queensland.
Coca-Cola Amatil (ASX:CCL) has downgraded its profit forecast for the second half of 2010 because of colder wetter weather, particularly flooding in Queensland.
Webjet Ltd (ASX:WEB) says the value of ticket sales rose 15 per cent to $285 million in the six months to 31 December 2010.
Best and worst performers: The best performing sector at close was Industrials, with the index rising 31 points to close at 3,721. The worst performing sector was Consumer Staples, the index falling 12 points to close at 7,569. The best performing stock in the S&P/ASX200 was Emeco Holdings shares advanced 7.73% to close at $1.045. Shares in Murchison Metals and Macarthur Coal also gained today. The worst performing stock was Lynas Corporation shares dropped 4.17% to close at $2.07. Shares in Avoca Resources and Energy World Corporation also closed weaker today.
In commodities, gold is trading at $US1,375 an ounce. And light crude is steady at $90.30 US a barrel.
