The Australian share market rose to a near nine-month high today, gaining for a fifth day in the past six as the banks and miners extended recent gains. Banking and resource stocks all closed higher and now the market is bracing itself for some key Chinese economic data, due out tomorrow.
The S&P/ASX200 Index gained 33 points to close at 4,835. On the futures market, the SPI is 48 points higher.
Company news: Retail and coal conglomerate Wesfarmers Ltd (ASX:WES) says it expects flooding in Queensland to significantly reduce production at its Curragh coal mine. The announcement comes after the company posted a lift in coal production at the site in the December quarter. The company declared a force majeure at its Curragh mine after extensive flooding shut most of Queensland’s coal mines. For the December quarter, coal production at Curragh was 2.38 million tonnes, a 14.3 per cent increase compared to the last quarter. Wesfarmers says its March 2011 quarter production will be affected by the extreme flood event. Shares in Wesfarmers closed 2.18 per cent higher at $33.35.
According to Deloitte’s, supermarket giants Woolworths Ltd (ASX:WOW) and Wesfarmers Ltd (ASX:WES) have moved up into the world’s top 25 retailers. Deloitte’s Global Powers of Retailing report ranks Woolworths as 20th on its list of 250 top retail companies in 2010 up from 26th a year earlier. Coles-owner Wesfarmers was ranked 28th up from 23rd position. No other Australian companies were featured on the top 250 list, which was dominated by firms from the United States, France and Germany. The world’s retailers were ranked by Deloitte based on their retail sales performances. Shares in Woolworths closed 0.43 per cent lower at $27.88.
Iron ore miner BC Iron Ltd (ASX:BCI) has entered into a trading halt, pending an announcement about a corporate transaction. Speculation has mounted on a possible $300 million takeover bid.
Qantas Airways Ltd (ASX:QAN) is back in the news again after a trans-Pacific flight from Sydney to New York via Los Angeles was forced to divert to Fiji for repairs due to an engine problem. Most of the 375 passengers on board stayed in Fiji overnight with a small number of passengers transferred to another airline
Leighton Holdings Ltd’s (ASX:LEI) subsidiary Thiess has won a six-year contract with Peabody Energy valued at $1.3 billion. The contract will see Thiess extend mining operations at Peabody’s Burton Coal Mine located in Bowen Basin in Queensland.
Shares in outdoor clothing retailer Kathmandu Holdings Ltd (ASX:KMD) soared today after the company upgraded its profit outlook, saying it expects significant higher profit in the six months to January 31 on the back of strong sales growth.
Best and worst performers: The best performing sector at close was Consumer Discretionary, with the index rising 17 points to close at 1,537. The worst performing sector was Telco Services, the index falling 10 points to close at 972. The best performing stock in the S&P/ASX200 was Lynas Corporation as share rose 5.76 per cent at $2.02. Shares in OZ Minerals and Karoon Gas also gained today. The worst performing stock was Aurora Oil & Gas as shares lost 4.1 per cent to close at $2.57. Shares in Virgin Blue and Sundance Resources also closed softer today.
In commodities, gold is trading at $US1,374 an ounce and light crude is up $0.18 cents to $US91.56 a barrel.
